Hong Kong issues world's first tokenized green government bonds

Hong Kong issues world's first tokenized green government bonds

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Author: Robert Strickland
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Hong Kong issues world's first tokenized green government bonds

Hong Kong government announces successful offering of over $100 million in digital green bonds

The Hong Kong government has announced a successful HK$800 million (about $101.7 million) offering of tokenized green bonds. The Hong Kong Monetary Authority (HKMA) said in a press release that this is the world's first tokenized green bond issued by the government.

The tokens were issued by HSBC Bank on a private blockchain. Subsequent coupon payments, secondary market settlements and bond redemptions will also be made digitally, the statement said.

Goldman Sachs GS DAP bank platform was used to tokenize the bonds, and bond settlement is handled by HKMA's Central Clearing System for Debt Instruments (CMU).

Tokenization of "green" bonds with yield of 4.05% and maturity of 1 year is one of the pilot projects announced by the Hong Kong government as part of the virtual asset market development plan.

The Hong Kong authorities have been developing a new regulatory regime for digital assets for several years. In October 2022, the government announced the legalization of retail cryptocurrency transactions. In early December, the Hong Kong Legislative Council passed legislation that introduces the concept of virtual assets and establishes compulsory licensing for crypto-service providers as of June 1 this year.

On February 14, German tech giant Siemens also announced a €60 million blockchain-based digital bond issue with a maturity of one year. Siemens bonds are sold directly to investors, without a bank as an intermediary.

 

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