Hong Kong Financial Secretary: Pilot tokenization of the Exchange Fund Bills before the end of 2026, improve the regulatory framework for tokenized investment products

The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, Xu Zhengyu, stated at a press conference on financial development measures for the first five-year plan for economic and social development and the Chief Executive's 2026 Policy Address that digital assets and financial technology are new growth engines for Hong Kong, with digital bonds issued in Hong Kong accounting for about 50% of the global share.

Before the end of 2026, a pilot program for the tokenization of Exchange Fund Bills will be implemented, and the Central Moneymarkets Unit (CMU) will establish a digital asset platform within 2026 to provide one-stop services for digital bond issuance and settlement. In terms of regulation and market development, this includes improving the licensing system for virtual assets, enhancing the regulatory framework for tokenized investment products, promoting the trading of regulated stablecoins on licensed platforms, and encouraging the expansion of compliant stablecoin application scenarios.