Hong Kong charts five-year course on data, AI, and tokenization in 'Fintech 2030' plan

The Hong Kong Monetary Authority (HKMA) has unveiled “Fintech 2030”, a five-year forward-looking strategy to improve the Chinese special jurisdiction’s financial innovation through tokenization and artificial intelligence.

HKMA Chief Executive Eddie Yue said Fintech 2030 will involve four pillars collectively known as DART (Data, Artificial Intelligence, Resilience, and Tokenization), which includes more than 40 initiatives combined to strengthen Hong Kong’s financial infrastructure and competitiveness.

Yue said the initiative was a natural evolution of the city’s fintech development from “fintech 2.0,” which doubled down on payments and transactions, to “fintech 3.0,” meant for resilience and future-readiness.

“Over the next five years, we will have 40 measures in four areas to make sure Hong Kong has more in-depth development, more resilience, and most importantly, we must be ready for the future,” Yue told delegates.

Data and payment infrastructure for a connected financial ecosystem

According to Yue’s address, recorded by the government’s official media channel, one of the pillars involves building next-generation data and payment infrastructure. The HKMA plans to create a secure, scalable system for data sharing, fast and safe cross-border payments, and new opportunities in trade finance and credit access for enterprises.

The second pillar, named the “AI² Strategy,” an acronym for Artificial Intelligence x Authorized Institutions, will promote the responsible and comprehensive adoption of AI in Hong Kong’s financial sector. The HKMA is looking to build shared, finance-specific AI infrastructure and collaborate with banks and technology partners to develop industry-standard models.

According to Yue, AI integration will help banks improve responsiveness, accessibility, and customer customization, all through transparency and accountability.

The third prong focuses on cybersecurity, technological reliability, and preparedness for quantum computing threats. The HKMA promised to launch a fintech-specific cybersecurity certification framework and real-time threat detection systems to counter upcoming risks to the blockchain, such as the widely-feared quantum technology.

Tokenization in Hong Kong’s fintech strategy

Tokenization, the process of converting real-world assets into digital tokens, was the last but most prominent pillar of the new roadmap to be discussed during Monday’s event. The HKMA mentioned its vision to accelerate the tokenization of real-world assets (RWAs) and financial instruments to build a vibrant tokenized economy in Hong Kong.

Under the plan, the HKMA will regularize the issuance of tokenized government bonds and the tokenization of the Exchange Fund papers, with settlements to be conducted on blockchain networks using new forms of digital money, including the e-HKD, tokenized deposits, and regulated stablecoins.

The regulator said it will soon launch Project Ensemble, a pilot program for testing real-value transactions through tokenized money, and will continue to incubate new use cases in partnership with financial institutions and other central banks.

“With a clear focus under the DART strategy, let us join hands in reimagining the future of finance, opening a new chapter, and pushing the boundaries towards a more sustainable and inclusive fintech ecosystem,” Yue said.

Hong Kong is home to more than 1,200 fintech firms, up 10% from last year, with the sector’s revenue projected to surpass $600 billion by 2032, according to government estimates.

SFC’s new rules to expand virtual asset market access

In parallel with the HKMA’s announcement, Hong Kong’s Securities and Futures Commission (SFC) introduced measures to boost liquidity and global competitiveness for virtual asset trading platforms (VATPs).

The regulator said licensed VATPs would now be allowed to share unified order books with affiliated overseas platforms. They will also be permitted to offer new virtual asset products to professional investors, including digital assets without a 12-month track record and HKMA-licensed stablecoins.

“While we encourage innovation, we must also ensure its real-world applicability, investor protection, and its impact on financial stability. I’m sure that Hong Kong will grow stronger as a vibrant, future-ready hub for fintech excellence,” said Financial Secretary Paul Chan Mo-po.

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