Blockchain Adoption: Hong Kong Exchange Launches New Settlement Platform to Connect with Users in China

Adoption China Hong Kong
Last updated:
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: LT/Adobe

Hong Kong Exchanges and Clearing Limited (HKEX), which operates a range of equity, commodity, fixed income, and currency markets, has unveiled an equities settlement acceleration platform called “Synapse.” 

The newly launched platform will leverage smart contracts programmed in DAML to streamline post-trade processes and improve operational efficiencies, according to a Wednesday press release

Synapse will be integrated into Stock Connect, an HKEX channel that enables international investors to access over 1,000 mainland Chinese stocks through routing in Hong Kong

“This technology-empowered platform will not only improve post-trade efficiencies, but will, over time, build a better, stronger ecosystem, supporting both market growth and investor growth strategies,” Glenda So, HKEX Group Head of Emerging Business and FIC, said. 

“We are very proud to be introducing Synapse to our market and we look forward to continuing to embrace new technologies that benefit our markets and our customers in the future.”

HKEX mentioned that its Stock Connect platform has been performing exceptionally well. 

The firm said that the average daily turnover of Northbound Stock Connect reached RMB 109.3 billion in the first half of 2023, marking a 5% increase compared to the previous year and a significant 50% surge from 2020 levels.

HKEX is the operator of The Stock Exchange of Hong Kong, Hong Kong Futures Exchange, and London Metal Exchange.

HKEX to Link Synapse With The Depository Trust & Clearing Corporation (DTCC)

HKEX will establish a connection between Hong Kong’s Depository Trust and Clearing Corporation via its Institutional Trade Processing service, facilitating centralized matching of cross-border transactions. 

This integration will automate the generation and transmission of settlement instructions back to the Synapse platform, streamlining the trade confirmation workflow.

“With this integration, global investors and HKEX participants will benefit from the central matching of cross-border transactions using DTCC’s CTM service, which will automatically generate and send settlement instructions to the Synapse platform, streamlining the trade confirmation and settlement notification process,” the announcement read. 

The Synapse platform is scheduled for launch in Hong Kong on October 9.

While Hong Kong has been positioning itself as a hub for Web3 companies with recent developments such as the introduction of retail trading for licensed crypto exchanges in August, it has also faced challenges. 

Just recently, the city witnessed the largest Ponzi scheme in its history, involving the embezzlement of approximately $166 million from JPEX crypto exchange users. 

The investigation into the incident is currently ongoing.

Meanwhile, analysts and industry experts have voiced concern that the fallout from the JPEX debacle will present significant challenges for virtual asset companies and hinder the government’s efforts to expand the sector.

“At a time when people still don’t completely understand what Web3 is, the JPEX case has created a negative impression for people in Hong Kong on digital assets and the broader Web3 industry,” Cyrus Ip, a crypto venture investor and chief business officer at artificial intelligence start-up DreamWld Technology, said. 

More Articles

Blockchain News
SEC Acknowledges Spot Solana ETF Filings from Canary, VanEck, Bitwise, and 21Shares
Hassan Shittu
Hassan Shittu
2025-02-12 00:29:24
Blockchain News
Crypto Custodian BitGo Eyes IPO in H2 as Regulatory Support Strengthens: Report
Tanzeel Akhtar
Tanzeel Akhtar
2025-02-11 23:30:45
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors