Third Batch of Tokenized Green Bonds Signals Government Commitment
Hong Kong is preparing to issue its third batch of tokenized green bonds, continuing a major initiative to digitize its public finance infrastructure. This follows two successful rounds in 2023 and 2024 and reflects the government’s long-term goal of making tokenized bond issuances a permanent part of its debt strategy.
The bonds are recorded and settled using distributed ledger technology (DLT), offering enhanced transparency, efficiency, and cost savings. The announcement was made by Financial Secretary Christopher Hui at the Hong Kong Digital Finance Awards 2025, where he emphasized the government’s intention to normalize tokenized government bonds in future financing plans.
Tax Incentives Could Boost Adoption of Tokenized Securities
To accelerate market participation, Hong Kong is considering tax exemptions on stamp duty for transfers of tokenized exchange-traded funds (ETFs). These incentives aim to reduce friction and promote wider adoption of digital securities across public and private markets.
Digital Asset Development Policy 2.0 Unveiled
The bond initiative is part of Hong Kong’s broader digital asset roadmap, as detailed in the Digital Asset Development Policy Declaration 2.0. This sweeping strategy focuses on:
- Stablecoin regulation
- Asset tokenization
- Legal clarity for digital asset operations
- Talent development and ecosystem growth
Through its “LEAP” framework, the government intends to position Hong Kong as Asia’s leading crypto finance hub.
Stablecoin Licensing Regime Starts August 1
A key part of the policy includes a licensing regime for stablecoin issuers starting August 1, 2025. This move is designed to support real-world use cases and build consumer trust in regulated digital currency systems.
In parallel, public consultation is underway for licensing rules related to digital asset exchanges and custodians, with feedback accepted until the end of August.
Hong Kong Targets Institutional Investors With Digital Indexes and Derivatives
To attract global institutions, HKEX has launched Bitcoin and Ethereum price indexes, offering onshore reference rates during Asian trading hours. Meanwhile, regulators are preparing to introduce digital asset derivatives for professional investors, expanding on recent approvals for spot ETFs, futures, and staking services.
The passing of the Stablecoin Bill in May further strengthens the legal foundation for digital asset innovation and reinforces Hong Kong’s commitment to regulated growth in the Web3 era.
Outlook
Hong Kong is positioning itself at the forefront of tokenized finance and digital asset regulation. By combining innovative public sector initiatives with private market incentives, the city is setting a blueprint for how governments can embrace blockchain to modernize financial systems.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.