On 19 Mar 2025, the HKMA published a Research Paper on DLT in the Financial Sector, examining DLT's potential benefits, real-world adoption cases, associated risks, and mitigation strategies. The paper, aligned with the 'Fintech 2025' strategy, encourages Authorized Institutions to leverage its insights and engage with the Supervisory Incubator for DLT to advance responsible innovation.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 19 Mar 2025, the Hong Kong Monetary Authority (HKMA) issued a Research Paper on Distributed Ledger Technology (DLT) in the Financial Sector, exploring DLT's potential to enhance efficiency, transparency, and innovation within the financial industry.
Research Paper Content
The paper examines DLT's transformative potential through in-depth interviews with industry experts, featuring 10 real-world adoption cases to illustrate current developments. It analyses associated risks of DLT adoption and provides recommendations for risk mitigation, aligning with the HKMA's 'Fintech 2025' strategy and 'All banks go Fintech' initiative.
Support Mechanism and Call to Action
The HKMA references its recently established Supervisory Incubator for DLT (launched 8 Jan 2025) as a dedicated channel for Authorized Institutions (AIs) to responsibly develop DLT solutions. The paper encourages AIs to review its insights, actively participate in the Supervisory Incubator, and explore productionising DLT initiatives, with contact details provided for further engagement.
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