Latest news with #ProjectEnsemble
Arabian Post
3 days ago
- Business
- Arabian Post
Hong Kong Unveils Bold 'LEAP' Blueprint for Crypto Leadership
Hong Kong's government on 26 June issued its Policy Statement 2.0 on the development of digital assets, signalling a decisive push to position the city at the forefront of the global crypto landscape. The statement introduces the comprehensive 'LEAP' framework—Legal, Expand, Advance, People—underlining a mission to develop a trusted, innovative, and deeply integrated ecosystem for digital assets. The regulatory reforms assign explicit oversight roles: the Securities and Futures Commission will licence digital asset exchanges, custodial and dealing services, while the Hong Kong Monetary Authority will govern bank-related activities in the sector. In addition, licensing regimes for stablecoin issuers and custodians are scheduled to commence on 1 August 2025, designed to strengthen anti‑money‑laundering safeguards, investor protection, and transparency in stablecoin issuance. Central to Policy 2.0 is a commitment to tokenisation of traditional financial instruments and real‑world assets. The government will regularise issuance of tokenised government bonds, streamline stamp‑duty treatment for tokenised ETFs, and legislate to support tokenisation of assets such as precious and non‑ferrous metals, and renewable energy products. These bids aim to boost liquidity and broaden market access, aligning with existing initiatives such as the HK$6.8 billion in green bond token issuances since 2022. ADVERTISEMENT Stablecoins also feature prominently, with proposals to pilot licensed stablecoins in public sector uses. Market consultation is seeking input on integrating these instruments into government operations and cross‑border payments, underpinned by stricter regulatory clarity. Tax incentives for private investment vehicles and family offices trading digital asset securities are expected in the 2025–26 fiscal year, aligning digital and traditional financial regimes. International alignment is embedded in the blueprint. Hong Kong's framework adheres to global standards—covering anti‑money‑laundering as per FATF, Basel Committee prudential supervision, IOSCO's policy recommendations, and OECD crypto‑asset tax transparency measures. Complementary pilot schemes include HKMA's 'Project Ensemble' wholesale central bank digital currency trials, LME‑backed tokenisation of metal assets in Hong Kong warehouses, and a Cyberport‑sponsored incubator scheme to finance blockchain startups. Since unveiling its original 2022 policy, the government has approved licences for over a dozen digital asset platforms, including nine trading licences and OTC frameworks, and supported tokenised bond issues by both government and corporate entities. Financial Secretary Paul Chan and SFC chief Julia Leung emphasise that this next phase marks a departure from pilot testing, transitioning toward institutionalisation and global competitiveness. Industry leaders responded positively. Legal and compliance expert Cora Ang described the framework as 'a strategic win' that aligns regulatory clarity with stablecoin and tokenisation growth. HashKey CEO Xiao Feng noted the city is entering a 'new stage of maturity', transitioning from sandbox environments to a substantive digital assets regime. Historical drivers such as the JPEX OTC fraud prompted regulators to enforce tighter custody and trading separation to protect investors. Notably, fintech legal advisers in Hong Kong report surging demand. Firms are actively supporting issuance of tokenised gold and digital bonds, as banks like Bank of Communications and Zhuhai Huafa Group deploy digital debt instruments via licensed platforms. Meanwhile, legal specialists continue to advocate for derivatives, margin‑lending, and institutional frameworks targeted at professional investors. Hong Kong's strategic deployment of Policy 2.0 underlines a competitive counterbalance to rival jurisdictions such as Singapore, Dubai, and the US, each advancing their own crypto regulatory frameworks. The city's alignment with global financial standards—alongside tailored incentives and public‑sector engagement—signals a comprehensive, forward‑leaning posture in digital asset finance.
Business Wire
06-05-2025
- Business
- Business Wire
Northern Trust Joins Project Ensemble to Test the Tokenization of Carbon Credits in a Cross-Border Setting
HONG KONG--(BUSINESS WIRE)--Northern Trust (Nasdaq: NTRS) today announced it has joined Project Ensemble, a Hong Kong Monetary Authority (HKMA) initiative, to help develop an experimental framework for cross-border trading of digital carbon credits. Project Ensemble is the HKMA's initiative aimed at supporting and shaping the development of the tokenization ecosystem in Hong Kong. In this collaboration, industry pioneers will test a framework for the cross-border trade of tokenized carbon credits. The collaboration aims to explore how overseas investors can seamlessly access tokenized voluntary carbon credits traded in Hong Kong. The project will be supported by The Northern Trust Carbon Ecosystem™, a fully digital platform for the end-to-end lifecycle management of digital carbon credits which utilizes private ledger digital blockchain technology. The initiative will leverage The Northern Trust Carbon Ecosystem's seamless settlement experience by recording, transferring and settling digital carbon credits as instructed in its role as designated custodian. Project Ensemble, launched in 2024, is the HKMA's initiative aimed at supporting and shaping the development of the tokenization ecosystem in Hong Kong. Central to this initiative is the Ensemble Sandbox, which is now facilitating the testing of tokenization use cases across different areas, including green and sustainable finance. In the Ensemble Sandbox, Northern Trust, along with other industry pioneers, will test a framework for the cross-border trade of tokenized carbon credits. Northern Trust announced the formal launch of The Northern Trust Carbon Ecosystem in September 2024. The ecosystem connects institutional buyers with project developers focused on climate solutions to avoid, reduce, or remove greenhouse gases in the atmosphere. Buyers can purchase digital carbon credits directly from project developers and retire these against their emissions footprint. The Northern Trust Carbon Ecosystem can support a variety of verified carbon credits, including those from removal and avoidance, providing a unified and fully transparent ledger. Justin Chapman, Group Head of Strategic Partnerships, Digital Assets and Financial Markets at Northern Trust, said: 'Our participation in Project Ensemble represents a significant step in bridging digital asset innovation with sustainable finance on a global scale. By collaborating with industry peers and regulators in Hong Kong, we are exploring new ways to connect markets and facilitate cross-border carbon credit transactions. This initiative exemplifies Northern Trust's strategy of partnering to drive innovation – leveraging our Carbon Ecosystem and digital asset expertise to help develop robust market infrastructure that can accelerate climate action and benefit investors worldwide.' Angelo Calvitto, Head of Asia Pacific at Northern Trust, said: 'The Asia-Pacific region's financial and digital innovation is unmatched in vibrancy and pace, with Hong Kong cementing its position as a leading hub for sustainable finance and tokenization. Northern Trust's participation in Project Ensemble underscores our commitment to being at the forefront of this regional transformation, connecting tokenized markets and building the cross-border sustainable finance infrastructure that will power the next generation of financial services. We are confident that this collaborative initiative will unlock new opportunities across APAC's dynamic markets and help shape the future of finance.' About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2025, Northern Trust had assets under custody/administration of US$16.9 trillion, and assets under management of US$1.6 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.
South China Morning Post
28-03-2025
- Business
- South China Morning Post
Hong Kong to get world's first tokenised money market ETFs from Bosera and HashKey
Chinese fund house Bosera Asset Management (International) and cryptocurrency exchange operator HashKey Group said they plan to launch the world's first tokenised money market exchange-traded funds (ETFs) in Hong Kong, underscoring the city's ambition to become a digital-asset hub. Advertisement The duo said in a statement on Friday that they would add new tokenised share classes to two existing money market ETFs – Bosera HKD Money Market ETF and USD Money Market ETF – providing both retail and institutional investors with a low-risk, blockchain-based liquid investment option. The ETFs, which have been approved by the Securities and Futures Commission, will be launched in April. Through tokenisation, the rights to an asset, such as a money-market fund, are converted into a digital token that can be traded on a distributed ledger technology network. Money market funds typically invest in low-risk, short-term debt securities such as commercial paper and treasury bills, providing liquidity and preserving capital while offering returns. Money market ETFs offer similar benefits but often have higher trading flexibility on stock exchanges. '[Compared with] traditional money market funds, this product greatly improves transparency and operational efficiency through blockchain technology, enabling investors to gain direct exposure to high-quality money market instruments by tokens, thereby fulfilling their asset allocation and risk management needs,' the firms said. Tokenisation has the potential to make financial transactions more efficient, transparent and less costly, according to HKMA chief executive Eddie Yue. Photo: Jonathan Wong Tokenised money market ETFs are one of the use cases in the Hong Kong Monetary Authority's (HKMA) Project Ensemble sandbox , which explores the tokenisation of real-world assets (RWAs) and facilitates a new financial market infrastructure that involves digital money and assets. Tokenisation has the potential to make financial transactions more efficient, transparent and less costly, Eddie Yue Wai-man, chief executive of HKMA, said last August at the launch of the sandbox.
