Yesterday the Hong Kong Monetary Authority (HKMA) unveiled a “Supervisory Incubator for Distributed Ledger Technology”, with tokenized deposits as a major focus. The regulator says it wants to help banks to maximize the potential of DLT by minimizing the risks.
It provides a platform enabling banks to reaffirm their risk management controls prior to launching a DLT system, with a dedicated HKMA team on hand for supervisory feedback. Banks can optionally conduct live trials. Additionally, the platform aims to promote best practices.
“As the banking industry continues to evolve, it is essential that we provide a supportive environment for innovation to thrive,” said Mr Arthur Yuen, Deputy CEO of the HKMA. “The Supervisory Incubator for DLT is a key component of our strategy to foster the development of DLT-based banking solutions that are safe, efficient, and beneficial to the industry and the wider community.”
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