Hong Kong Prepares Third Tokenized Bond Issuance, Eyes More Offerings

Hong Kong plans to expand its tokenized bond program as the government prepares a third batch of tokenized green bonds and signals intentions to make such issuances a regular feature of its debt strategy.

Speaking at the Hong Kong Digital Finance Awards 2025, Secretary for Financial Services and the Treasury Christopher Hui confirmed that the government’s upcoming tokenized bond sale builds on the success of two earlier rounds of tokenized green bonds issued in 2023 and 2024.

The bonds were recorded and settled on distributed ledger technology, according to a Thursday report from Beijing state-owned newspaper Wen Wei Po.

Hui said authorities aim to normalize tokenized government bonds in the future. To encourage wider adoption, the government is considering tax incentives, including exemptions on stamp duty for transfers of tokenized exchange-traded funds.

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Hong Kong unveils new digital asset strategy

Hong Kong’s embrace of tokenization comes as part of its broader digital asset strategy outlined in the newly released Digital Asset Development Policy Declaration 2.0.

Last week, the region announced that the new digital asset plan centers on regulating stablecoins and promoting asset tokenization through its “LEAP” framework, aiming for legal clarity, ecosystem growth, real-world adoption and talent development.

As part of the new framework, the government will implement a licensing regime for stablecoin issuers starting Aug. 1, which “will facilitate the development of real-world use cases.”

Meanwhile, the government is consulting the public on proposed licensing rules for digital asset trading platforms and custodians, with the consultation period open until the end of August.

Hong Kong Exchanges and Clearing (HKEX) has also launched the city’s first digital asset indexes, offering price benchmarks for Bitcoin and Ethereum during Asian trading hours. The effort aims to attract institutional investors by providing reliable onshore reference prices.

Related: Hong Kong to develop crypto tracking tool for money laundering

Hong Kong targets crypto derivatives

Last month, Hong Kong’s financial regulators announced plans to roll out digital asset derivatives trading aimed at professional investors.

The move builds on recent approvals for spot cryptocurrency ETFs, futures products, and staking services. In April, HashKey received authorization to provide staking, underscoring the city’s push to establish itself as a top digital finance center.

In May, Hong Kong’s Legislative Council passed the Stablecoin Bill, setting the stage for a regulated environment that could cement the city’s role as a global hub for digital assets and Web3 innovation.

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