Hong Kong-based investment bank GF Securities has launched the first Hong Kong tokenized commercial papers on the Ethereum Blockchain.
It is a move. reported HKEJ is aiming to bring a breakthrough in Hong Kong’s local digital asset eco-system and further cement Hong Kong as the leader of the integration between traditional assets financial Systeme based on blockchain technology
To the uninitiated tokenization is the process of converting the right to an asset in a digital coin on a Blockchain. GF Securities launched its initiative in response to a growing interest worldwide for the tokenization Real World Assets. This is part of a broader trend towards the digitalization of physical assets.
It is no surprise that this trend continues to grow, since it allows investors to be more involved with the real economy. ABT Tech is a Hong Kong-based blockchain company that will be providing the technical support to this tokenized commercial papers.
It is noteworthy that the issue complies to the Hong Kong Securities and Futures Commission’s (SFC’s) regulatory guidelines, set out in November last year, which created a framework for innovative securities. financial Instruments in the Region
This tokenized security is built on the Ethereum Blockchain, which offers multiple advantages. Investors can monitor their investments and manage them with more flexibility than traditional institutions.
Ethereum also facilitates the development of integrated solutions and additional tools, which reduce barriers to entry and allow for a democratized investment process. BlackRock leveraged Ethereum has launched BUIDL as its latest attempt at blockchain tokenization.
RWA tokenization has been recognized on a global level as being the most effective way to increase your ROI. next This is the next stage of crypto-development, which could bring trillions into the industry. BCG’s report suggested that tokenized asset are expected By 2030, the market is expected to grow from $16 trillion to $22 trillion.
Ripple, a U.S. blockchain payment company, is looking to gain traction in the tokenization market. disclosing The firm also announced plans to tokenize the industry last year. This firm also included Hong Kong has launched e-HKD, the digital Hong Kong Dollar.
The recent move by GF Securities is notable because it comes a few weeks after BOCI (the investment banking arm of Bank of China), partnered UBS is set to release tokenized notes on Ethereum by June 2023.
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Source: crypto.news