HKEX's LME explores tokenization of metal inventories stored in Hong Kong warehouses.

October 29 - According to Reuters citing informed sources, the London Metal Exchange (LME), owned by Hong Kong Exchanges and Clearing (HKEX), is exploring the tokenization of metal inventories stored in Hong Kong warehouses, turning them into digital assets that can be used for loan collateral and other financing activities, in line with Hong Kong's strategy to develop an international commodities trading center.

The LME responded that it is currently in the early stages of exploring the tokenization of metal inventories for which no warehouse receipts have been issued. Unlike warrant-backed metals that already have standardized financing mechanisms, such inventories currently lack mature financing channels. Informed sources revealed that the LME plans to hold a closed-door industry roundtable in early November to discuss the plan. HKEX is also testing the tokenization of carbon credits to achieve near-real-time transaction settlement.