Hong Kong is gearing up for a further expansion of its tokenized bond program, with the government preparing to issue its third batch of tokenized green bonds. This move indicates a potential shift towards a regular tokenized bond issuance strategy.
In an announcement made at the Hong Kong Digital Finance Awards 2025, the Secretary for Financial Services and the Treasury, Christopher Hui, revealed that the forthcoming tokenized bond sale builds upon the successful issuances in 2023 and 2024. These bonds were recorded and settled using distributed ledger technology, as reported by Beijing’s state-owned newspaper, Wen Wei Po, on Thursday.
Hui also expressed the government’s intent to normalize the issuance of tokenized government bonds in the future. To propel widespread acceptance, the government is contemplating tax incentives, such as stamp duty exemptions for transfers of tokenized exchange-traded funds.
As part of Hong Kong’s comprehensive digital asset strategy, encapsulated in the recently unveiled Digital Asset Development Policy Declaration 2.0, the region is focusing on regulating stablecoins and promoting asset tokenization via its “LEAP” framework. This strategy is designed to foster legal clarity, ecosystem growth, real-world adoption, and talent development.
Set to kick off on August 1, the government will implement a licensing regime for stablecoin issuers, a move aimed at promoting the development of real-world use cases. At the same time, the government is seeking public feedback on proposed licensing rules for digital asset trading platforms and custodians, with the consultation period running until the end of August.
The Hong Kong Exchanges and Clearing (HKEX) has initiated the city’s first digital asset indexes, providing price benchmarks for Bitcoin and Ethereum during Asian trading hours. The initiative is aimed at luring institutional investors by offering reliable onshore reference prices.
Adding to the momentum, Hong Kong’s financial regulators disclosed plans last month to introduce digital asset derivatives trading for professional investors. This move follows recent approvals for spot cryptocurrency ETFs, futures products, and staking services. The approval for HashKey to offer staking services in April further underscores the city’s determination to position itself as a leading digital finance hub.
In May, the passage of the Stablecoin Bill by Hong Kong’s Legislative Council set the stage for a regulated environment that could bolster the city’s status as a global hub for digital assets and Web3 innovation.
