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      Hong Kong to Pilot Tokenized Exchange Fund Bills by 2026

      Hong Kong is set to pilot the tokenization of Exchange Fund Bills by the end of 2026, as confirmed by Chief Executive John Lee Ka-chiu on September 16. The initiative, led by the Hong Kong Monetary Authority (HKMA), aims to put over HK$1.3 trillion (approximately US$166 billion) in government instruments on a distributed ledger, marking a significant step in the city's digital finance ambitions.

      Exchange Fund Bills are short-term debt instruments issued by the HKMA, primarily used by banks for daily liquidity management. The tokenization process is expected to allow banks continuous access to these instruments, enhancing liquidity management and reducing delays associated with traditional settlement processes, which are limited to specific hours.

      In conjunction with this pilot, the HKMA plans to launch CMU OmniClear, a digital asset platform designed to streamline digital bond issuance. This platform is also expected to go live within 2026, reflecting Hong Kong's commitment to developing its digital asset and fintech ecosystem while ensuring regulatory compliance. A dedicated Tokenised Bond Expert Group, comprising major international financial institutions, will oversee the legal assessments related to this initiative.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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