The London Metal Exchange (LME), owned by Hong Kong Exchanges and Clearing (HKEX), plans to tokenize metal held in its Hong Kong warehouses into digital assets that can serve as loan collateral for corporate financing. The initiative aligns with Hong Kong's five-year plan to expand its commodities trading hub and is expected to generate a new revenue stream for the LME while attracting investors, traders, and financiers. The LME confirmed it is at an early stage of exploring tokenization of metal inventory not covered by warehouse receipts, with an invitation-only industry roundtable scheduled for early November. Separately, HKEX is testing the conversion of carbon credits into digital tokens to enable rapid settlement.