Hong Kong promotes the development of digital bonds to reinforce its status as an international financial center.

Hong Kong is planning the issuance of its third sovereign digital bond and has appointed a group of banks to design the transaction. This marks Hong Kong's continued advancement in financial innovation based on Blockchain technology to strengthen its position as a global leader in digital finance.

Overview of the Development of the Digital Bond Market

Hong Kong issued its first tokenized green bond in February 2023, followed by the issuance of a multi-currency bond a year later. Both issuances were favored by institutional investors and are seen as an important milestone for the application of Blockchain technology in the traditional debt market. By continually advancing the issuance of digital bonds, the Hong Kong government has demonstrated confidence in Blockchain technology and investor demand.

Digital bonds have the following advantages over traditional paper bonds:

• Faster issuance speed
• Lower cost
• Higher transparency

Enterprises Actively Participate in Promoting Market Growth

The digital bond market in Hong Kong is not only led by the government, but private enterprises are also actively participating. At present, at least six companies have issued digital bonds in Hong Kong. By 2025, the funds raised through digital bonds are expected to reach approximately $1 billion, accounting for 70% of the total issuance.

Many financial institutions and law firms have expressed increasing interest in digital bonds:

• A leading trading platform's distributed ledger platform has issued over $1.7 billion in digital bonds, covering sovereign, financial, and corporate transactions.
• These digital bonds can be supported by public Blockchains such as Ethereum.
• Although the issuance form is innovative, investors are still primarily traditional institutions using fiat currency for investment.

Hong Kong Government Support Measures

To stimulate market development, Hong Kong has launched a series of fiscal incentives:

• Each eligible digital bond issuance can receive a maximum grant of 2.5 million HKD (approximately 320,500 USD)
• Committed to becoming a regional digital financial hub, promoting the issuance of public and private digital bonds.
• Emphasize the advantages brought by blockchain technology such as improved settlement speed, reduced costs, and enhanced transparency.

Strategic Significance Analysis

The development of digital bond issuance is of important strategic significance for Hong Kong:

1. In line with the global financial technology development trend, especially against the backdrop of the United States supporting cryptocurrency policies.
2. Meet the high demand for digital assets in the Asian market
3. Consolidate Hong Kong's status as a world-class financial center through innovation.
4. Maintaining competitiveness in the context of rapid changes in the financial system

Development of Regulatory Framework

According to the knowledge base information, Hong Kong officially implemented a comprehensive regulatory framework for stablecoins on August 1, 2025:

• Established the licensing and regulatory requirements for stablecoin issuance.
• Cryptocurrency trading platforms must obtain permission from the Securities and Futures Commission.

The establishment of this regulatory framework provides important protection for the healthy development of the digital bond market, helping to enhance investor confidence and market stability.

By continuously promoting the development of digital bonds and improving relevant regulations, Hong Kong is striving to take a leading position in the global wave of digital financial innovation, injecting new vitality into its status as an international financial center.