US regulator flags tokenization risk as Asia pushes digital money

Homepage > News > Finance > US regulator flags tokenization risk as Asia pushes digital money TL;DR: On October 23, the SEC named tokenization a “high-risk” exam priority for fiscal 2027, Malaysia’s and Thailand’s central banks joined Singapore’s BLOOM initiative to build common cross-border digital money approaches with industry, and HSBC launched its Hong Kong dollar stablecoin, RedCoin, to 3.3 million PayMe users. Key Takeaways: The SEC added tokenization to its fiscal 2027 examination priorities, calling it a “high-risk” area for systemically important clearing agencies. Bank Negara Malaysia and the Bank of Thailand joined the Monetary Authority of Singapore’s BLOOM initiative on October 23 as policymaker members. BLOOM focuses on acceptance and settlement across jurisdictions, interoperability across digital money arrangements, and programmable controls such as identity verification and sanctions screening. HSBC launched RedCoin, a Hong Kong Monetary Authority-licensed Hong Kong dollar stablecoin, on October 23 through PayMe, which has more than 3.3 million users. In a single busy day of announcements, the United States securities regulator named tokenization a “high-...