CMU OmniClear's digital asset platform to commence operation by year-end: Eddie Yue says Hong Kong's position in digital finance further consolidated.

CMU OmniClear will establish a digital asset platform within this year, providing one-stop services such as digital bond issuance and settlement. HKMA Chief Executive Eddie Yue stated that the digital asset platform will commence operation by the end of this year, embodying the vision of 24-hour on-chain atomic settlement, thereby enhancing flexibility and efficiency. The authorities will also explore accepting tokenized deposits and regulated stablecoins for settlement on the platform, further consolidating Hong Kong's leadership position in the global digital finance sector. 24-hour on-chain atomic settlement utilizes blockchain technology to break through traditional business hours constraints, enabling buyers and sellers worldwide to achieve instant delivery-versus-payment of "simultaneous exchange of funds and assets with zero default risk" through smart contracts at any time of the day. On September 23, Eddie Yue, who also serves as Honorary President of the Treasury Markets Association Council, said in a speech at the Treasury Markets Summit that the digital asset platform will support settlement in e-HKD, Hong Kong's central bank digital currency, and will also explore accepting tokenized deposits and regulated stablecoins for settlement on the platform. He reiterated that the HKMA will conduct testing on the tokenization of Exchange Fund Bills, which will help the banking sector manage assets and liabilities more efficiently. Eddie Yue stated that Hong Kong's leadership in digital finance will facilitate innovative solutions for the issuance and investment of fixed income assets. This will higher transaction efficiency, transparency, and accessibility, benefiting practitioners who can more effectively adopt and integrate these technologies. The HKMA's vision is to create a broadly participatory "diversified market," a "deep and broad market" with ample liquidity, and a "vibrant native digital market" with future-ready infrastructure. In addition, Eddie Yue mentioned that Hong Kong's bond market has achieved a compound annual growth rate of 20% over the past 20 years. Last year, about one-quarter of Asia's international bond issuance took place in Hong Kong, with strong growth mainly driven by dim sum bonds. As HKD funding conditions turned favorable, HKD-denominated wonton bonds also grew significantly, with wonton bonds issued by global institutions increasing 64% year-on-year in the first half. Eddie Yue noted that the HKMA has been promoting Hong Kong globally to attract more issuers and investors to participate in the Hong Kong market. To develop a diversified, deep, vibrant, and digitally native bond market, the HKMA is cultivating a healthy ecosystem, using government bond issuance to play a demonstrative role. In addition to issuing multi-currency bonds and expanding issuance scale, it is also extending the tenor of government-issued offshore RMB and HKD bonds to provide long-term reference for the yield curve and promote private sector bond issuance. Eddie Yue stated that in April this year, Hong Kong's average daily foreign exchange turnover rose about 20% compared to last October, with active RMB real-time payment settlement and trade settlement, and RMB loans growing nearly 30%. He said the Treasury Markets Association is exploring the establishment of a 7-day offshore RMB liquidity bidding mechanism, and the HKMA also plans to issue offshore RMB short-term debt instruments to provide more liquidity management products and strengthen the offshore RMB yield curve.