Hong Kong is taking a step towards innovative finance by investigating the tokenization of stable cash flows like international shipping rents on blockchain platforms, as announced by Secretary for Financial Services and the Treasury Christopher Hui. This initiative aims to create new investment opportunities while using blockchain technology to enhance asset transparency.
While the Hong Kong government has passed legislation on stablecoins, applications are still pending review with licenses anticipated for issuance next year. Hui stressed that stablecoins will not be used for speculative trading and are intended to address real-world economic challenges, particularly in cross-border payments. Therefore, a limited initial number of licenses will be issued to start, along with cautious regulatory measures.