ABCD Presents Strategic 2026 Policy Address Proposal to CEPU: Accelerating "Finance+" and "AI+" Through Onshore Tokenized Credit and RWA Infrastructure

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Aug 18
4 min read

Updated: Aug 24

HONG KONG — August 18, 2026 — The Association of Blockchain Development (ABCD) officially submitted and presented its landmark 2026 Policy Address Proposal and recommendations for The First Five-Year Plan for Economic and Social Development of the HKSAR (2026–2030) to Mr. Nicholas Kwan, Deputy Head of the Chief Executive’s Policy Unit (CEPU).

Figure 1: ABCD Delegation presenting the 2026 Policy Address Proposal to Mr. Nicholas Kwan at the Chief Executive's Policy Unit (CEPU) on August 13, 2026.

Led by ABCD Founder and Vice President Dr. Amanda Lim, the executive delegation included key industry leaders and contributors: Beatrice Tai, Julianne Doe, Stephen Sze, CFA, Dr. Patrick Hung, and Alan Chan.

Titled "Accelerating 'Finance+' and 'AI+' Empowerment Through Onshore Tokenized Private Credit, Real-World Asset (RWA) Infrastructure, and GBA Trade Data Connectivity," the proposal sets out a visionary yet practical 7-Point Solution Architecture across four strategic operational pillars. The framework bridges critical SME financing bottlenecks, attracts global family office capital, and establishes Hong Kong as a world-leading, quantum-ready digital finance powerhouse under "One Country, Two Systems."

The Strategic Context: Resolving Legacy Gaps in SME Credit & Market Fragmentation

Despite Hong Kong’s position as an international financial center, small and medium enterprises (SMEs) face persistent structural barriers. Traditional commercial bank underwriting relies heavily on 18-month-old paper accounting audits, leading to 6 to 8-week loan approval delays and rigid demands for physical real estate collateral. Consequently, creditworthy SMEs without property remain stranded, stifling local economic vitality.

Simultaneously, global institutional allocators and family offices manage billions in liquid capital seeking high-yielding, short-duration private credit. However, they are hampered by secondary market fragmentation, high administrative overhead, cross-border tax drag, and reliance on overseas cybersecurity providers.

ABCD’s proposal resolves these friction points by uniting three transformational technologies: Artificial Intelligence (AI) Underwriting, Real-World Asset (RWA) Tokenization, and HKMA Cap. 656 Fiat-Referenced Stablecoins (FRS)—confined strictly within Hong Kong's trusted legal jurisdiction.

The 4 Operational Pillars & 7-Point Solution Architecture

During the CEPU briefing, ABCD delegation speakers presented the core components of the proposal:

Pillar I: From Data Silos to Predictive Credit

Intervention 1 — Government-Backed Commercial Data API Integration: Mandate real-time API connectivity between HKMA’s Commercial Data Interchange (CDI), Inland Revenue Department (IRD), and Customs & Excise Department. Opening CDI access to licensed HK FinTech firms alongside banks enables real-time, algorithmic credit scoring that slashes loan approval lead times from weeks to seconds.
Intervention 2 — Compliant GBA Commercial Trade Data Verification Corridor: Expand CDI and CorpID to establish a secure cross-boundary verification corridor for GBA SME trade payables, fully compliant with Mainland PIPL and Hong Kong PDPO privacy regulations.

Pillar II: From Secondary Market Fragmentation to Liquidity

Intervention 3 — SFC Onshore RWA Digital Securitization Fast-Track Sandbox: Launch a dedicated SFC sandbox for Type 1 (Dealing in Securities) and Type 9 (Asset Management) licensees to issue, fractionally structure, and trade tokenized short-duration credit assets, supported by prospectus exemptions and capital adequacy concessions.
Intervention 4 — Recognition of On-Chain Debt Registry Standards in HK Company Law: Enact statutory amendments to Hong Kong Company Law recognizing Distributed Ledger Technology (DLT) asset registries as legally binding title records.

Pillar III: From Regulatory Uncertainty to Tax Efficiency & Capital Velocity

Intervention 5 — Schedule 16C Tax Scope Expansion for RWA Derivatives: Issue explicit tax guidance confirming 0% profits tax treatment under Schedule 16C (Inland Revenue Ordinance) for secondary market yield notes and tokenized credit fractions held by Family-owned Investment Holding Vehicles (FIHVs), backed by proactive bilateral tax treaty coordination to prevent cross-border double counting (e.g., CFC or PFIC liabilities).
Intervention 6 — Standardized GBA Supply Chain Trade Finance Rules: Establish unified technical and risk standards across GBA cities to enable 24/7/365 instant programmatic loan disbursements via HKMA Cap. 656 FRS and FPS infrastructure, coupled with daily automated Point-of-Sale (POS) merchant card repayment sweeps.

Cross-Cutting Foundation: Trusted, AI-Enabled & Quantum-Ready RWA Security

Intervention 7 — National Security & Tech Sovereignty Framework:
Cyber Assurance: Mandate that all regulated RWA issuers engage at least one qualified Hong Kong or Mainland cyber-intelligence provider.
AI Auditing: Implement AI-driven smart-contract vulnerability reviews backed by human expert sign-off.
Post-Quantum Cryptography (PQC): Support HKMA’s Quantum Preparedness Framework through hybrid PQC pilots for long-lived asset records and custody keys.
Security Clearinghouse: Co-fund an industry-governed Digital Finance Security Clearinghouse (inspired by Project Lightwell) for shared threat intelligence and incident response.
Risk Governance: Enforce source code escrow, key-person insurance, and clear legal liability rules across issuers, AI auditors, and intermediaries.

Multi-Stakeholder Advantages: Delivering Value Across Hong Kong's Economy

Executing this framework generates tangible, high-impact benefits across all economic sectors:

SMEs & Local Merchants: Gain instant credit decisions based on real-time transaction data rather than paper audits. Unlocks crucial working capital without mortgaging physical real estate, while automated daily POS sweeps prevent debt accumulation.
Global Investors & Family Offices: Capitalize on Hong Kong's Schedule 16C statutory 0% profits tax exemption on tokenized credit yields. Short-duration (3–6 month) cash flows offer rapid capital recycling, minimal interest rate duration risk, and secondary market liquidity via regulated ATS venues.
FinTech, AI & Cybersecurity Ecosystem: Direct API integration with CDI enables FinTech lenders to deploy advanced AI credit engines. Mandated local cyber assurance creates thriving demand for Hong Kong and Mainland security providers while positioning the city as an exporter of trusted RWA security standards.
HKSAR Government & Economy: Mobilizes billions in liquid private capital directly into the real economy without drawing on public expenditure. Institutionalizes national "Finance+" and "AI+" strategies, cementing Hong Kong's standing as a world-leading, quantum-ready hub for digital asset finance.

About the Association of Blockchain Development (ABCD)

Founded in 2018, the Association of Blockchain Development Limited (ABCD) is a premier non-profit organization bridging traditional finance and disruptive technologies. With core expertise spanning AI, blockchain, carbon neutrality, and the digital economy, ABCD unites industry leaders, policymakers, and innovators to advance Hong Kong’s position as a global financial and technological nexus.