The London Metal Exchange (LME) is evaluating the use of blockchain technology to tokenize off-warrant metal stored in Hong Kong warehouses. The initiative aims to facilitate financing and establish a new revenue stream for the exchange. Executive Hugo Brodie presented the concept at the Tokenised Markets and Money Conference on October 23, 2026.
The exchange intends to launch a pilot program in 2027. Currently, the project remains in the research phase, with no tokens or products released. The LME is focusing on establishing legal frameworks for token ownership and building trust between market participants. Future steps depend on upcoming consultations and studies to refine the strategy.
As of May 2026, the LME reported a significant expansion in approved warehouse capacity in Hong Kong, targeting over 100 000 tonnes of storage. These facilities hold various industrial metals, including copper, aluminum, and nickel. The project addresses liquidity challenges in metal markets amid rising demand for industrial materials driven by data center development and artificial intelligence.
