HKMA Boosts Hong Kong's Digital Asset Hub Status with HK$2.5M Digital Bond Grants
The Hong Kong Monetary Authority (HKMA) is boosting Hong Kong's status as a digital asset hub. It plans to offer grants of up to HK$2.5 million for digital bond issuances, following successful tokenized government green bond issuances.
The HKMA aims to publish guidelines for a Digital Bond Grant Scheme, with each eligible issuance receiving a maximum grant of HK$2.5 million. This follows a significant digital bond issuance worth over US$750 million across multiple currencies, making it the largest at the time.
The scheme's collaborations include atomic settlement of digital asset transactions (DvP) and wholesale CBDC (PvP). Hong Kong has previously involved several broker firms in digital asset emission tokenization, though some faced restrictions from Chinese regulators. Notably, no specific banks or projects were highlighted for high transaction sizes in digital emissions.
The HKMA has also announced collaborations with the central banks of Brazil and Thailand for cross-border tokenization transactions, further expanding Hong Kong's reach in the digital asset sphere.
The HKMA's initiatives, including the Digital Bond Grant Scheme and cross-border collaborations, underscore Hong Kong's commitment to becoming a leading tokenization venue. These moves are expected to attract more digital bond issuances, fostering growth in the region's digital asset market.
