Hong Kong has set up a "regulatory incubator" to promote the proper adoption of blockchain technology by banks as the region continues its efforts to become a cryptocurrency hub. On Wednesday, the HKMA (de facto central bank) announced that the incubator is designed to help banks manage the risks associated with experimenting with blockchain or DLT implementations. The HKMA said the incubator would focus on tokenised deposits as the scheme aims to address latent risks as banks move to production-related services such as deposits and loans that would "span DLT-based and traditional banking infrastructure".