GF Securities (Hong Kong), a famous Chinese securities company, has achieved the following glorious milestones. issue The first short-term commercial paper (commercial paper) under the Hong Kong legal framework is a tokenized security. ABT Tech, a locally founded blockchain technology company, provided technical expertise.
Known as the financial center of the world, Hong Kong is now fully embracing innovation to usher in a new phase of digital real estate investment. From Web 3.0 to the tokenization of virtual and real world assets (RWA), the city has taken positive steps.
This important proposal follows the issuance of important regulatory guidelines by the Hong Kong Securities and Futures Commission last November, heralding the introduction of tokenized securities. This marks a transformational milestone in the region’s digital financial landscape.
Tokenized security is based on the Ethereum blockchain public network ecosystem and offers many benefits, including improved transaction security, transparency, and efficiency. There are no institutional constraints, so investors have all the information they need about the token.
This is a paradigm shift that will take us away from the traditional intermediaries of tokenized securities issuance and democratize investing. This move significantly lowers the threshold for participation, expands the number of investors and creates favorable conditions for personalized product design.
Access to tokenized RWA reform investments
However, tokenized RWA is only the first step towards digitizing assets. Therefore, by allowing the issuance and trading of tokens, investors will be able to own tangible physical assets on a blockchain public ledger, lowering the threshold for investment and optimizing asset liquidity. I can.
Additionally, the Hong Kong Securities and Futures Commission (SFC) revealed that retail investors will also be able to access Security Token Offerings (STO) and RWA investments, leading to a large influx of funds into the Hong Kong market.
The launch of RWA and STO is expected to inject new impetus into Hong Kong’s economy by improving asset liquidity and operational efficiency. Although these changes are still in their infancy, improved regulation and increased investor knowledge will change the direction of traditional financial institutions.
Hong Kong’s role in RWA innovation
Looking to the future, Hong Kong has great potential when it comes to innovation in RWA and STO. Backed by a strong regulatory framework, the city is well-positioned to drive Web3 change in the industry. However, this momentum must be maintained through further breakthroughs and infrastructure improvements.
Despite the challenges posed by technological advances and compliance issues, Hong Kong regulators have been open and supportive of RWA innovation. This means more funds will be available for his RWA innovation in Hong Kong if private investors are accepted.
Standing on the precipice of the digital economy era, Hong Kong’s embrace of the RWA revolution demonstrates its commitment to pioneering innovative development. With the concerted efforts of all stakeholders, Hong Kong can take advantage of the opportunities presented by her Web 3.0 and take the lead towards a thriving digital economy.
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