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Center for Digital Currency and Digital Assets
Brief Introduction
Digital currencies are transforming the future of finance by enabling faster, more efficient, and transparent transactions. Meanwhile, digital assets are expanding opportunities for ownership and investment through tokenization and decentralized technologies.
Our Mission
The Center for Digital Currency and Digital Assets is a premier research hub dedicated to advancing the frontiers of knowledge in the rapidly evolving fields of digital currencies and digital assets. Leveraging HKUST's academic excellence and Hong Kong's pivotal role as a global financial center, the Center conducts cutting-edge, interdisciplinary research on blockchain technology, Central Bank Digital Currencies (CBDCs), cryptocurrencies, stablecoins, decentralized finance (DeFi), and the regulatory frameworks that govern them.
Work Focus
01
Stablecoins:
We analyze the various models of stability—including fiat-collateralized, crypto-backed, and algorithmic designs—assessing their mechanisms, pegging efficacy, and inherent risks. Our research also examines their growing role as a payment rail and store of value, and their potential impact on monetary sovereignty and the broader financial system.
02
Central Bank Digital Currencies (CBDCs):
We investigate the core design choices, technical infrastructure, and policy implications for implementing CBDCs. Our research also focuses on their potential to revolutionize cross-border payments by enhancing speed, reducing costs, and improving transparency between monetary systems.
03
Real-World Assets (RWA) Tokenization:
This stream explores the process of converting rights to physical or traditional financial assets—such as real estate, bonds, or commodities—into digital tokens on a blockchain. We focus on the legal frameworks, operational challenges, and market potential of this innovation for enhancing liquidity, enabling fractional ownership, and creating new investment paradigms.
04
Blockchain Technology:
This area focuses on overcoming key technical limitations through next-generation scalability solutions like layer-2 protocols and sharding. We concurrently research privacy-enhancing technologies such as zero-knowledge proofs and advance interoperability protocols to enable seamless communication between diverse blockchain networks.
05
Cryptocurrencies & Market Dynamics:
This stream analyzes the market microstructure of crypto exchanges, including price formation mechanisms, liquidity, and the impact of volatility on asset valuation. We further develop and test sophisticated investment strategies and portfolio management techniques tailored to the unique characteristics of digital asset markets.
06
Decentralized Finance (DeFi):
We examine the architecture and economic incentives of core DeFi primitives like smart contracts, automated market makers (AMMs), and lending protocols. A key focus is assessing the systemic risks, financial stability implications, and novel opportunities for open and programmable finance that these innovations present.
07
Regulation & Compliance:
Our work addresses critical regulatory challenges, including crafting effective Anti-Money Laundering (AML) frameworks and robust cybersecurity standards for digital asset platforms. We also provide analysis on investor protection mechanisms and advocate for harmonized global regulatory coordination to foster safe and efficient markets.
Team Members
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