In 2016, the HKMA launched a comprehensive research on DLT and commissioned the Hong Kong Applied Science and Technology Research Institute for the first stage of the research, with findings published in a whitepaper in November 2016. The whitepaper discusses the potential application of DLT in financial services and identifies some possible challenges related to governance, risk management, compliance, legal issues and actual deployment of DLT solutions.
In October 2017, the HKMA published the second whitepaper on DLT to deliver the results of the second stage of the research. The second whitepaper confirms the promising nature of DLT while stating that DLT is not a universal solution for all financial services. It delivers more detailed findings from the three Proof-of-Concept trials, namely trade finance, mortgage valuation applications and digital ID management, along with assessments of the feasibility of their commercialisation. Based on advice from experts, the second whitepaper also offers solutions on governance, legal and compliance implications and general control principles for DLT for the banking and payment industries.