The operator of the stock exchange business said it is taking the step at a time when the market capitalisation of digital assets, including entities such as bitcoin, is worth around $3 trillion globally.

Hong Kong Exchanges and Clearing (HKEX) the stock market operator, is to launch a new digital trading platform in 2022 as part of its strategy for staying competitive, the South China Morning Post reported, quoting the organisation’s chief executive. 

The new platform, which is called Diamond, will initially trade environmental, social and governance-related products such as carbon-emission related contracts and look at digital assets and megatrends, the newspaper said. 

“We’re very excited about the opportunities in digital and the whole transformation that we’re observing around the world,” said Nicolas Aguzin, who unveiled a blueprint of the bourse’s future development to investors yesterday, the report said. “Digital assets today represent a total market capitalisation of about $3 trillion. And we’ve talked about the potential of the market in terms of trading in the future, it could be up to $100 trillion [in annual volumes] for the whole market in the next 10 years.”

Digital assets, a term covering entities such as bitcoin, non-fungible tokens and smart contracts, have expanded rapidly as a financial and wealth management industry topic, as explored here.

For Hong Kong, tapping into the digital assets space makes sense as the jurisdiction seeks to keep its markets strong after more than two years of often harsh anti-COVID-19 restrictions on travel and human activity. It is a way for the jurisdiction to stand up to competition from rival tech and wealth hubs such as Singapore. 

“We have a long track record of successfully capturing growth opportunities, expanding the breadth and diversity of our offering, driving international market participation and building upon our exclusive connectivity with China,” Aguzin said in a statement on the HKEX’s website. “Our vision is to build the Marketplace of the Future. We will do this by strengthening Hong Kong as an international financial centre, facilitating the vital two-way capital flows between East and West, delivering vibrant, diversified markets, supporting the creation of great companies and putting our clients first.”

The exchange said that it “will continue to both bring the China growth story to international investors and help Chinese capital access global opportunities.”