• Hong Kong launches its third tokenized green bond using distributed ledger technology, aiming to boost transparency and liquidity.
• The move aligns with LEAP policy and stablecoin licensing set for August, positioning the city as a digital finance leader.
What happened: Hong Kong issues third tokenized green bond under DLT
Hong Kong has issued its third tokenized green bond, building on previous issuances in 2023 and 2024, Secretary for Financial Services and the Treasury Christopher Hui confirms . This bond is issued on distributed ledger technology (DLT), which allows real‑time recording and settlement of transactions. The initiative is part of the government’s Digital Asset Development Policy Declaration 2.0, which also sets out a licensing framework for stablecoin issuers coming into force on 1 August 2025 . Additionally, the updated LEAP framework includes proposals for licensing digital asset trading platforms and custodians, with public consultation open until end‑August. To encourage adoption, the government is offering tax benefits such as stamp duty relief on tokenized ETFs . The move also coincides with Hong Kong Exchanges and Clearing launching its first digital asset indexes for Bitcoin and Ethereum, providing onshore benchmarks for financial institutions.
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Why it’s important
This represents a bold step in modernizing Hong Kong’s finance infrastructure, and the implications are notable. Tokenized bonds on blockchain can lower costs and speed up settlement, which should attract more institutional investors . Offering stamp duty relief on tokenised ETFs further enhances the appeal for investors, making the market more competitive versus other centres. The introduction of stablecoin licensing under LEAP shows the city’s intent to regulate rather than restrict, which offers clarity to market participants . These moves could pave the way for tokenisation of other real‑world assets, such as precious metals and structured products . Hong Kong’s bid to normalise regular tokenised bond issuance sets a precedent in Asia and may influence how other jurisdictions approach asset tokenisation.
The position is positive. This strategy strikes a balance between innovation and regulation. By combining digital‑native issuance with legal frameworks, Hong Kong sends a signal it can be both agile and stable. That dual nature matters to banks, asset managers and fintech firms. As global finance moves towards digital assets, Hong Kong may serve as a blueprint for integrating blockchain into mainstream markets.
