Hong Kong Pushes for Blockchain Adoption in Financial Markets

Hong Kong's financial regulator is urging banks and asset managers to accelerate their adoption of blockchain technology in order to meet the demands of increasingly tech-savvy investors.

Speaking at the ASIFMA EU-Asia Financial Services Dialogue, SFC Chief Executive Julia Leung emphasized that traditional market upgrades, such as extending trading hours and shifting to T+1 settlement times, will not be enough to satisfy the needs of digital-native investors who expect instant execution and 24/7 access.

Leung cited the growing trend of mobile phone usage among millennials and Gen Z, with many spending five to six hours per day on their devices, as evidence that traditional market structures are no longer sufficient.

In her keynote address, Leung highlighted the potential of tokenization to streamline post-trade workflows and expand product design. She argued that by turning clearing and settlement into software, tokenization can enable more efficient processing while supporting a wider range of products, from bonds and funds to gold and beyond.