Hong Kong Special Administrative Region Government: Will Regularize Tokenized Government Bond Issuance

The Hong Kong Special Administrative Region Government today released the "Hong Kong Digital Asset Development Policy Declaration 2.0". In the declaration, the Hong Kong Special Administrative Region Government stated that the Hong Kong Special Administrative Region Government has issued two tokenized green bonds (totaling about HK $6.80 billion) to demonstrate the benefits of the tokenization solution prospectively. On this basis, the government will regularize the issuance of tokenized government bonds, and will explore different currency and maturity arrangements, as well as other innovative options. The SAR Government hopes to provide the market with stable and high-quality digital bonds through this move, further expand accessibility and attract a wider investor base. To further capitalize on the benefits of tokenization, the Hong Kong Treasury and the HKMA will continue to engage with industry experts to understand the views of different aspects of the market, including the inclusion of digital currencies to improve transaction efficiency, secondary market trading application scenarios, and further expand investor participation in the local bond market. The SAR government aims to establish a global benchmark by taking the lead in issuing and regularizing tokenized bonds, enhance market confidence in the technology, and encourage public and private sector adoption.