LME Explores Tokenizing Metal Inventories in Hong Kong Warehouses for Loan Collateral and Financing

Odaily: 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 as loan collateral and for other financing activities, in alignment with Hong Kong's strategy to develop into an international commodities trading hub. LME said it is currently in the early stages of tokenizing metal inventories for which no warehouse receipts have been issued. Unlike warrant-backed metals, which already have standardized financing mechanisms, these inventories currently lack mature financing channels. Sources familiar with the matter said LME plans to hold a closed-door industry roundtable in early November to discuss the initiative. HKEX is also testing the tokenization of carbon credits to enable near-real-time transaction settlement.