Hong Kong Expands Tokenized Bond Program
Hong Kong solidifies its position as a crypto finance leader by launching its third series of tokenized green bonds. This initiative builds on successful 2023 and 2024 issuances, demonstrating the government’s commitment to financial innovation through distributed ledger technology for bond recording and settlement.
Comprehensive Digital Asset Framework
The government simultaneously introduced its Digital Asset Development Policy Declaration 2.0, establishing clear guidelines for stablecoin regulation and asset tokenization. The ‘LEAP’ framework (Legal clarity, Ecosystem growth, real-world Adoption, and talent development) provides structure for these initiatives. A new licensing system for stablecoin issuers will take effect August 1.
Incentivizing Market Participation
To encourage adoption, authorities are proposing tax benefits including stamp duty exemptions for tokenized exchange-traded fund transfers. These measures aim to attract diverse market participants to Hong Kong’s digital asset ecosystem.
New Benchmarking Tools
Hong Kong Exchanges and Clearing (HKEX) introduced Asia’s first digital asset indexes tracking Bitcoin and Ethereum prices during regional trading hours. These benchmarks provide institutional investors with reliable reference points, enhancing market transparency.
Regulatory Progress
Recent approvals for cryptocurrency ETFs, futures products, and staking services – including HashKey‘s staking authorization – demonstrate Hong Kong’s commitment to becoming a digital finance hub. The May passage of the Stablecoin Bill further establishes a regulated environment for digital assets and Web3 development.
