The Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) have completed the first-phase review of the DLT fixed-income market.

Deep Tide TechFlow news. On June 30, according to an announcement by the Hong Kong Monetary Authority, the Financial Secretary’s Office and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly announced on June 29 that they have completed the first-stage review conducted to promote further application of distributed ledger technology (DLT) in Hong Kong’s fixed income market. The review results confirm that Hong Kong’s existing legal and regulatory environment is sufficiently flexible to support the issuance of tokenized bonds. On the same day, the Companies Registry also released frequently asked questions to clarify that the debenture-holder register maintained using DLT complies with the relevant provisions of the Companies Ordinance.

The next-stage review will be carried out in the second half of this year, focusing on legal optimization topics such as allowing electronic signatures to execute issuance documents for tokenized bonds, as well as issues related to the “possession” and “transfer” of tokenized fixed income products, to promote the broader application of DLT in the fixed income market and the digital asset sector.