The Hong Kong Monetary Authority aims to see a more reliable and regulated stablecoin environment in the city in a few years, after the coming stablecoin law has sparked market interest.
Arthur Yuen Kwok-hang, the authority's deputy chief executive, mentioned at an event today that tokenization is believed to take part in economic activities and financial market transactions in five years.
Yuen considered that it is necessary to make complementary efforts in the platform for clearing and settlement of tokenization and to build ahead of time.
Stablecoin is a unit of tokenized clearing, Yuen said, adding that the tokenization-related regulatory work can be carried out after the stablecoin ordinance comes into effect on August 1.
A reliable regulatory environment for stablecoin, which HKMA aims to have in a few years, is the premise of tokenization, said Yuen.
In addition, HKMA is discussing with mainland authorities about the deepening of the connection between the two financial markets, involving the Stock Connect Schemes, said Yuen, but he was not in a position to disclose this to the public for the time being.
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