Key facts
- Hong Kong established an expert group to support tokenized bond adoption.
- The group includes JPMorgan Securities, HSBC, Standard Chartered Bank, UBS, Ant Digital, and HashKey Group.
- It will review policy, market practices, and innovations for tokenized bond growth.
- Hong Kong issued an HK$800 million tokenized green bond in 2023 and HK$6 billion in 2024.
- Initial discussions focused on legal and regulatory issues for tokenized bonds.
Hong Kong has established a new expert group to foster wider adoption of tokenized bonds, as announced by the Hong Kong Monetary Authority (HKMA). The group comprises prominent financial institutions and technology firms, including JPMorgan Securities, HSBC, Standard Chartered Bank, UBS, Ant Digital, and HashKey Group. Its mandate is to review and recommend policy measures, market practices, and technological innovations necessary for the growth of tokenized bond issuance and trading. The HKMA indicated that initial discussions in May centered on the legal and regulatory framework surrounding tokenized bonds, examining how existing rules apply to both primary sales and secondary market activities. This initiative builds upon Hong Kong's prior successes in issuing tokenized bonds, such as an HK$800 million tokenized green bond in February 2023 and a HK$6 billion digital green bond offering in 2024, which utilized multiple currencies and expanded digital bond infrastructure. The involvement of diverse participants aims to address practical challenges and promote scalability in the tokenized bond market.