Hong Kong and Abu Dhabi sign fintech agreement
The Hong Kong Monetary Authority (HKMA) plans to work with regulators in Abu Dhabi to develop a cross-border trade finance system built with distributed ledger technology (DLT).
The HKMA signed an agreement on Tuesday with the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The two will collaborate on supporting innovative businesses, information sharing and joining innovation projects that may include a DLT-supported cross-border trade finance network.
“We are particularly pleased to start a dialogue with FSRA on the opportunity to build a cross-border trade finance network using DLT,” said the HKMA’s chief fintech officer, Nelson Chow. The Hong Kong authority has already commenced similar work on a trade finance cross-border infrastructure using DLT with the Monetary Authority of Singapore (MAS).
“We look forward to working with the HKMA to support our fintech start-ups and innovative businesses, from regulations to adoption, in advancing and applying their solutions to each of our respective financial markets and jurisdictions,” added the FSRA’s chief executive, Richard Teng.
The HKMA has already signed up several banks to its DLT network, including Bank of China, HSBC and Standard Chartered. Last December, it signed a fintech co-operation agreement with the Dubai Financial Services Authority (DFSA).