Hong Kong is set to expand its tokenized bond program, with the government preparing a third batch of tokenized green bonds and signaling plans to make such offerings a regular part of its debt issuance strategy.
At the 2025 Hong Kong Digital Finance Awards, Secretary for Financial Services and the Treasury Christopher Hui announced that the upcoming sale builds on the success of the previous two rounds of tokenized green bonds issued in 2023 and 2024.
These bonds were recorded and settled using distributed ledger technology, according to a Thursday report from the Beijing-based state-owned newspaper Wen Wei Po.
Hui added that the government aims to normalize the use of tokenized bonds in the future. To support broader adoption, authorities are also considering tax incentives, including stamp duty exemptions on the transfer of tokenized exchange-traded funds.
Hong Kong launches updated digital asset strategy
Hong Kong’s push toward tokenization is part of a broader strategy outlined in its newly released Digital Asset Development Policy Declaration 2.0.
Unveiled last week, the updated digital asset roadmap focuses on regulating stablecoins and accelerating asset tokenization under the “LEAP” framework, which targets legal clarity, ecosystem development, adoption of real-world applications, and talent cultivation.
As part of this initiative, the government will roll out a licensing regime for stablecoin issuers starting August 1, aimed at fostering practical use cases.
In parallel, authorities are seeking public input on proposed licensing rules for digital asset trading platforms and custodians, with the consultation period open through the end of August.
Adding to the momentum, Hong Kong Exchanges and Clearing (HKEX) has introduced the city’s first digital asset indexes, providing benchmark prices for Bitcoin and Ethereum during Asian market hours. The move is designed to draw institutional investors by offering trusted local reference data.
Hong Kong sets sights on crypto derivatives market
Last month, Hong Kong’s financial regulators revealed plans to introduce digital asset derivatives trading for professional investors, marking another step in the city’s growing digital finance agenda.
This initiative follows recent approvals for spot crypto ETFs, futures products, and staking services. In April, HashKey became the first firm authorized to offer staking, highlighting Hong Kong’s commitment to becoming a leading digital asset hub.
In May, the Legislative Council passed the Stablecoin Bill, laying the foundation for a regulated framework that aims to solidify the city’s position as a global center for digital assets and Web3 innovation.
