Report: LME plans to advance metal tokenization in conjunction with Hong Kong's five-year plan

The London Metal Exchange is aiming to convert metals stored in its Hong Kong warehouses into digital assets that can be used for financing, according to people familiar with the matter, a move closely tied to Hong Kong SAR's five-year plan to build a commodities hub. Creating metal-backed digital assets is expected to attract investors, traders and financial institutions a goal in Hong Kong's new five-year economic blueprint released in September this year and would also open up a new revenue stream for the LME. The London exchange responded: "The LME is in the early stages of exploring the tokenisation of off-warrant metal inventory to support business financing... We will engage with stakeholders to develop our plans." The LME has arranged an invitation-only, in-person industry roundtable in early November to discuss the initiative.