Hong Kong’s banking watchdog will conduct tests on the operation of the tokenization of HK$1.3 trillion worth of Exchange Fund bills by year-end to boost the efficiency of asset and liability management, Chief Executive John Lee Ka-chiu said. The tests will facilitate lenders in further harnessing the advantages of tokenization technology to make efficient, round-the-clock use of the bills. The government will regularize digital bond issuance to drive innovation, such as using digital currencies for settlement and exploring their full-cycle application for digital bonds, including dividend payment and redemption, Lee said. [...]