tl;dr
Hong Kong's central bank has launched a blockchain incubator to support local banks in developing blockchain products, with a focus on tokenization. The initiative aims to help banks manage the risks associated with transitioning to blockchain services and promote best practices. Meanwhile, a Salvad...
Hong Kong's central bank has launched a blockchain incubator to support local banks in developing blockchain products, with a focus on tokenization. The initiative aims to help banks manage the risks associated with transitioning to blockchain services and promote best practices.
Meanwhile, a Salvadorian fintech has partnered with a European firm to push asset tokenization in El Salvador, aiming to issue up to $300 million in tokenized assets this year and work on standardizing the approach to tokenization in the country.
Hong Kong’s blockchain incubator
The Hong Kong Monetary Authority (HKMA) described the new incubator as a “new supervisory arrangement” that will allow local banks to “maximize the potential benefits of DLT adoption by effectively managing the associated risks.” This Supervisory Incubator for Distributed Ledger Technology will mainly focus on the risks that arise as banks transition from experimentation to production of blockchain services. HKMA says tokenization will also be a core focus once the incubator begins. The new incubator is the latest in a handful of initiatives by the HKMA targeting digital assets and blockchain.
El Salvador steps up tokenization efforts
Elsewhere, a Salvadorian fintech has partnered with a European tokenization firm to push asset tokenization in the Central American nation. Ditobanx, a fintech licensed to offer digital asset services in El Salvador, announced its partnership with Tokeny, a Luxembourg-based on-chain finance solutions firm focused on tokenization. The partnership aims to help El Salvador “build a standardized framework for tokenized regulated assets.” Ditobanx will leverage Tokeny’s infrastructure to issue, manage, and distribute tokenized assets in El Salvador. The digital bank projects that it will issue up to $300 million in tokenized assets this year. It already has 22 clients lined up for the service.
While it’s more renowned for making BTC legal tender, El Salvador is evolving beyond BTC to unlock value through tokenization.