Financial technology has always been highly valued in Hong Kong and has broad prospects. On November 29, Chief China Economist of HKEx Ba Shusong said that financial technology innovation will become an important development direction of Guangdong, Hong Kong and Macao Dawan District in China and the regional distribution will cover all areas of Guangdong and Hong Kong will focus on blockchain and virtual banking, asreported by the China Business Network.
To develop the industry, CyberMiles Foundation joined the Hong Kong OTC and the Association for Financial Technology Development (OFDA) to share its expertise with the city-state’s financial, brokerage and legal institutions.
OFDA is a non-profit organization registered in Hong Kong and composed by people who are interested in helping with the development of Hong Kong, focusing on multiple fields of expertise, such as blockchain, artificial intelligence, trading system platforms, and financial products and services.
OFDA believes that by significantly reducing costs and increasing efficiency, blockchain technology can deliver services that were otherwise valuable but could not be realized due to high transaction costs.
Based on the decentralization, non-tamperable, and peer-to-peer trust mechanism of blockchain technology, one of the biggest problems facing the financial industry can be solved to some extent. Therefore, a number of financial institutions, including China Merchants Bank, have been actively experimenting with blockchain technology in order to break through the problems of credit verification in previous financial transactions, high cost and slow circulation.
As a System Technology expert, CyberMiles will complement the organization’s current structure with blockchain technology knowledge, providing OFDA with additional application scenarios to work with.
For instance, the recent blockchain-based technology that allows the securities to become tokenized, called security token offering (STO), is a typical case where Technology can enhance the current financial system.
Issuers can then convert financial assets or interests that already exist into tokens and convert them into digital assets on the chain. And this process does not require any intermediary, the issuer can issue securities for sale, decentralize the investment, and greatly improve the liquidity and diversity of assets.
By partnering with OpenFinance Network, the first fully compliant STO exchange in the United States, CyberMiles is able to guarantee a legal platform for issuers who would like to use CyberMiles’ blockchain to tokenize their assets.
This partnership is believed to leverage Hong Kong’s financial landscape, already known to be one of the major financial centers in the world.