Whitepaper on Distributed Ledger Technology

The Fintech Facilitation Office (FFO) of the Hong Kong Monetary Authority (HKMA) commissioned the Hong Kong Applied Science and Technology Research Institute (ASTRI) to conduct a research project on the subject of DLT. The key objectives of this project were to carry out an open-minded and an in-depth examination of the technology (including an investigation into its potential, its risks, and its regulatory implications); and to identify possible applications of DLT to banking services by engaging in proof-of-concept work. This white paper may be regarded as the first stage in this larger research project. It aims to provide the fintech industry in Hong Kong with a reasonably comprehensive study of the key features, benefits, risks and potential of DLT. It also includes the initial findings of the proof-of-concept work carried out on DLT applications in three areas: mortgage loan application, trade finance, and digital identity management.