- Hong Kong plans to expand its tokenized bond offerings and aims to make them a regular government debt instrument.
- The government will issue a third round of tokenized green bonds after successful sales in 2023 and 2024.
- Officials are considering tax incentives, such as stamp duty exemptions, to promote wider use of tokenized assets.
- Hong Kong will launch a licensing regime for stablecoin issuers and is seeking public input on digital asset platform regulation.
- The city continues to develop its digital finance sector, including new digital asset indexes and crypto derivatives for institutional investors.
Hong Kong will expand its tokenized bond program as part of its growing digital asset policies. The government announced plans for a third batch of tokenized green bonds, building on previous sales. Authorities are working to integrate these digital financial instruments as a recurring part of their borrowing strategy.
Christopher Hui, Secretary for Financial Services and the Treasury, stated at the Hong Kong Digital Finance Awards 2025 that the upcoming tokenized bond issuance will follow two earlier sales completed in 2023 and 2024. These bonds used distributed ledger technology, recording and settling transactions digitally, according to a Beijing state-owned newspaper Wen Wei Po report.
Hui explained that the city aims to normalize government-issued tokenized bonds in the coming years. To encourage greater adoption, officials are considering measures such as tax incentives and exemptions from stamp duty on transfers of tokenized exchange-traded funds (ETFs).
This move fits into Hong Kong’s broader digital asset strategy, announced through the Digital Asset Development Policy Declaration 2.0. Last week, Hong Kong introduced its LEAP framework, which focuses on clear regulations for stablecoins, growth of the digital asset ecosystem, and real-world adoption. The framework will include a new licensing regime for stablecoin issuers starting August 1, with the goal to support real-world digital asset use.
The government is seeking public comment on proposed licensing rules for digital asset trading platforms and custodians, with the consultation open until the end of August. Hong Kong Exchanges and Clearing (HKEX) has launched digital asset indexes that provide benchmark prices for Bitcoin and Ethereum during Asia trading hours, aiming to attract institutional investors.
In the past month, regulators announced new plans for digital asset derivatives trading for professional investors. Recent approvals have allowed spot cryptocurrency ETFs, futures products, and staking services, and HashKey gained approval for staking services in April.
In May, the city’s Legislative Council passed the Stablecoin Bill, further outlining regulations for digital assets and supporting Hong Kong’s efforts to position itself as a global center for blockchain and Web3 technologies. Other upcoming initiatives include a planned crypto tracking tool for monitoring financial crime.
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