Leung Fung-yee: Financial markets should leverage blockchain technology for development; tokenization will reshape clearing and settlement processes.

According to Foresight News , Ms. Leung Fung-yee, Chief Executive of the Hong Kong Securities and Futures Commission (SFC), delivered a speech at the EU-Asia Pacific Regulatory Forum in Sydney, Australia, stating that the tide of technological innovation and digitalization is unstoppable and irreversible. As capital market regulators, we must embrace technology to drive the transformation of financial markets. Therefore, the integration of traditional and digital finance is particularly important. In an increasingly technology-driven financial environment, banks, asset management companies, and market infrastructure operators should consider how to leverage technologies such as blockchain to enhance their survival and promote vigorous development. Digital transformation is imminent: financial markets must evolve in tandem with the new era of capital creation, allocation, and acquisition. Market infrastructure must be thoroughly upgraded to truly meet the market's pressing demand for 24/7 service, particularly in the segmentation, clearing, and settlement of financial products. Distributed ledger technology and tokenization offer a solution. The true value of tokenization lies in its programmability, which, in addition to improving clearing and settlement efficiency, supports a wide range of tokenized investment products, including bonds, funds, and even gold. As the tokenization ecosystem continues to grow, we must effectively integrate relevant innovative projects to protect customer assets and seamlessly combine market confidence in traditional finance with the efficiency of decentralized finance. This integration can further unleash liquidity, promote broader investor participation, and increase market inclusivity, creating a more dynamic, competitive, and forward-looking financial ecosystem for the Asia-Pacific region.