Hong Kong Banks Aim to Launch Tokenized Deposits in 2025

According to Foresight News, Hong Kong's financial sector is seeing significant interest in tokenized deposits, with seven banks expressing intentions to introduce them this year. This development was highlighted by the Hong Kong Monetary Authority's (HKMA) Assistant President for Financial Infrastructure, Zhou Wenzheng. In response to market speculation regarding the HKMA's stance on digital Hong Kong dollar retail applications, Deputy President Li Dazhi clarified that the authority has not ruled out the retail use of stablecoins. He emphasized the potential for stablecoins in retail, noting that their practical application will ultimately be determined by commercial entities. Li further explained that digital Hong Kong dollars, stablecoins, and tokenized deposits share similar technological characteristics, differing primarily in their issuers. The digital Hong Kong dollar is classified as a "public currency," while tokenized deposits and stablecoins are considered "private currencies." He noted that digital Hong Kong dollars and tokenized deposits are likely to utilize private blockchains, whereas stablecoins are predominantly issued on public blockchains.