Hong Kong issues HK$800m in tokenized green bonds

The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR Government) announced connected Feb 16 that it had issued HK$800 cardinal successful tokenized greenish bonds, nether the Government's Green Bond Program (GBP). The bonds were underwritten by 4 banks and priced astatine a output of 4.05%.

According to the announcement, the level utilized Goldman Sachs' tokenization protocol GS DAP for the bond, which uses a backstage blockchain web to settee information tokens representing the beneficial interests of bonds successful a T+1 payment-vs-payment (DvP) manner, and currency tokens representing claims connected the HKMA's Hong Kong dollar ineligible tender. 

Tokenization, the process of representing assets oregon securities arsenic integer tokens, is simply a comparatively caller conception successful the fiscal world. By utilizing blockchain exertion to make integer tokens, issuers tin supply much transparency, efficiency, and accessibility successful the issuance and trading of securities. This determination towards the integer colony of bonds connected backstage blockchain networks marks a important displacement from accepted colony processes, which often trust connected manual verification and paper-based documentation. 

Financial Secretary Paul Chan noted that the palmy issuance of tokenized greenish bonds marks a milestone for Hong Kong. He shared: 

“Hong Kong has been actively promoting the exertion of innovative technologies successful the fiscal sector, actively exploring caller concepts and technologies to amended the efficiency, transparency, and information of fiscal transactions."

The palmy issuance of the tokenized greenish enslaved highlights the increasing adoption of blockchain exertion successful the fiscal manufacture and marks an important measurement towards the improvement of sustainable concern globally.

Related: NASDAQ-listed Interactive Brokers to connection crypto trading successful Hong Kong

The authorities of Hong Kong continues to bespeak that it remains committed to the improvement of integer plus infrastructure. In December 2022, Hong Kong introduced 2 exchange-traded funds (ETFs) for cryptocurrency futures, raising implicit $70 million earlier its launch. 

In October 2022, Cointelegraph reported that Hong Kong’s securities regulator wants to let retail investors to put straight successful virtual assets and to reconsider existent crypto trading requirements.  According to Elizabeth Wong, caput of the fintech portion astatine the Securities and Futures Commission (SFC), the authorities of Hong Kong is considering introducing its ain measure to modulate crypto successful its ain China-free way.