Commonplace Chartered CEO Invoice Winters stated on Monday that Hong Kong’s push into tokenized cash and stablecoins may lay the inspiration for a brand new period of digital commerce settlement.
Talking at Hong Kong FinTech Week, Winters pointed to ongoing pilots in tokenized deposits and the creation of a Hong Kong-dollar-backed stablecoin as potential breakthroughs for cross-border commerce.
“I wouldn’t say that we’ve totally captured the digitized nature of these flows as but, however we’ll,” Winters stated. “Having improvements just like the tokenization of deposits being led in Hong Kong, the institution of Hong Kong greenback secure cash … turns into a very fascinating forex of trade, or medium of trade for worldwide commerce.”
He added that Hong Kong’s “pilots in digital belongings … as mechanisms for commerce globally … will clean the evolution into the brand new worldwide buying and selling order on wholly digital phrases.”
His remarks come nearly a yr after Commonplace Chartered’s Hong Kong unit, Animoca Manufacturers and HKT introduced a three way partnership to use for a license from the Hong Kong Financial Authority to problem an HKD-backed stablecoin underneath town’s new regulatory regime. The trio is among the many 5 entities taking part within the HKMA’s stablecoin issuer sandbox launched final yr.
Earlier as we speak, through the Hong Kong Fintech Week, the Securities and Futures Fee (SFC), town’s markets regulator, introduced that it might permit locally-licensed exchanges to entry world liquidity through shared order books.
The change, detailed in a brand new round, permits Hong Kong platforms to combine world liquidity swimming pools underneath what the SFC refers to as its ASPIRe roadmap for digital belongings.
By allowing “shared order books,” the SFC goals to slim worth spreads, improve market effectivity, and enhance worth discovery, though it warned of upper operational and settlement dangers.
Platforms should keep pre-funding, delivery-versus-payment settlement, unified market surveillance throughout jurisdictions, and compensation reserves to guard consumer belongings, the SFC stated in its round.
