Hong Kong Launches Tokenized Securities Framework with Industry Leaders
Formed in Hong Kong, the newly launched Tokenized Securities Framework sets out to standardize tokenized finance. The framework has been developed by a group of industry players including FORMS HK, Chainlink, Apex Group, CSpro, and Blockchain Valley@Cyberport.
The initiative is designed to make it easier for tokenized securities to be issued, distributed, and settled in Hong Kong. It uses the ERC-3643 token standard which incorporates compliance directly into the token itself.
Chainlink contributes two tools to the framework: its Cross-Chain Interoperability Protocol and its Automated Compliance Engine. The protocol allows tokenized assets to move across different blockchain networks, while the engine handles on-chain regulatory checks.
The framework has been launched without any reported live issuances or transaction volumes. However, Apex Group's existing client relationships could give the TSF a significant distribution network, with $3.5 trillion in assets under administration globally.