Hong Kong Monetary Authority: The settlement of tokenized green bonds uses the Goldman Sachs digital trading platform, and the CMU settlement system of the HKMA will create Hong Kong dollar tokens

Odaily Planet Daily News Hong Kong Monetary Authority Assistant President (Foreign Affairs) Xu Huaizhi said that the current settlement of tokenized green bonds in Hong Kong is the digital trading platform provided by Goldman Sachs, but the central settlement system (CMU) of the HKMA's debt instruments also plays an important role . CMU opens an account on the platform, and the issuer and investor have another account. After the investor invests funds, CMU will create a Hong Kong dollar token (cash token), and the issuer has another security token (security token). Since CMU is owned by the Hong Kong Monetary Authority, Hong Kong dollar tokens have high credibility, which helps reduce transaction risks. When investors want to buy bonds, they buy securities tokens with Hong Kong dollar tokens, and then obtain bonds of equivalent value, which involves smart contracts. Dividends and redemptions at maturity will be automatically processed on the platform, and investors will automatically receive The interest and principal of the bond can then be exchanged back to legal tender through the CMU. (Letter)