Back

Hong Kong Plans Third Batch of Tokenized Bonds With Potential CBDC Integration

Hong Kong's third batch of tokenized bonds may extend to fund-side tokenization and integrate CBDC for subscription, building on previous green bond successes.

Summary

Hong Kong has issued approximately HK$386 billion in bonds since 2019, including tokenized green bonds worth USD 100 million and USD 750 million in February 2023 and 2024. The upcoming third batch may extend tokenization to the fund-side and potentially incorporate central bank digital currency (CBDC) for subscription.

Terms & Concepts
  • Tokenized Bonds: Debt securities that are issued and recorded on a blockchain, enabling digital trading and settlement.
  • Fund-Side Tokenization: The process of digitizing the investment or subscription funds for financial products on a blockchain-based platform.
  • Central Bank Digital Currency (CBDC): A digital form of a country’s official currency issued and regulated by its central bank.