Hong Kong launches third tokenized bond series, enhancing its digital asset strategy.
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Hong Kong Advances Tokenized Bond Initiative
In a strategic move to solidify its position as a leader in digital finance, Hong Kong is preparing to launch a third series of tokenized green bonds. This initiative is part of a broader effort to integrate digital assets into the region’s financial landscape, as outlined in its newly unveiled Digital Asset Development Policy Declaration 2.0.
Building on Previous Success
Related: Hong Kong Embraces Bitcoin as a National Reserve Asset for Financial Security
The upcoming issuance follows the successful launch of two previous rounds of tokenized green bonds in 2023 and 2024. These bonds were recorded and settled using distributed ledger technology, marking a significant step forward in Hong Kong’s financial innovation. At the Hong Kong Digital Finance Awards 2025, Christopher Hui, Secretary for Financial Services and the Treasury, emphasized the government’s commitment to making tokenized government bonds a regular feature of their debt strategy.
To further encourage adoption, Hong Kong is considering tax incentives, such as exemptions on stamp duty for transfers of tokenized exchange-traded funds (ETFs). This approach aims to attract more investors and bolster the region’s reputation as a hub for digital finance.
Comprehensive Digital Asset Strategy
Related: Hong Kong to Strengthen Digital Asset Regulation Over the Next 18 Months
Hong Kong’s embrace of tokenization is part of a wider digital asset strategy that includes the regulation of stablecoins and the promotion of asset tokenization through its “LEAP” framework. This framework focuses on providing legal clarity, fostering ecosystem growth, encouraging real-world adoption, and developing talent in the digital finance sector. A licensing regime for stablecoin issuers is set to begin on August 1, which is expected to facilitate the development of practical use cases for digital assets.
The government is also seeking public input on proposed licensing rules for digital asset trading platforms and custodians, with the consultation period open until the end of August. This inclusive approach is designed to ensure that the regulatory environment supports innovation while protecting investors.
Targeting Crypto Derivatives and Institutional Investors
Related: Hong Kong Government Offers Crypto Tax Incentives to Boost Hedge Fund Industry
In addition to tokenized bonds, Hong Kong is expanding its focus to include digital asset derivatives trading, targeting professional investors. This move builds on recent approvals for spot cryptocurrency ETFs, futures products, and staking services. Notably, HashKey received authorization in April to provide staking services, underscoring the city’s ambition to become a top digital finance center.
In May, the Legislative Council passed the Stablecoin Bill, paving the way for a regulated environment that could further cement Hong Kong’s status as a global hub for digital assets and Web3 innovation. This legislative progress is part of a concerted effort to attract institutional investors by offering reliable onshore reference prices for digital assets.
For further information, you can refer to the official press releases from the Hong Kong Monetary Authority and government announcements on the latest financial policies.
Sophia is a pioneer in the world of Web3 and NFT ecosystems. With extensive experience in digital art and tokenomics, she breaks down the intricate relationships between creativity and blockchain technology. Her unique perspective bridges the gap between technology and culture.
