Hong Kong Set to Launch Third Blockchain-Based Green Bond Offering

Hong Kong is preparing to issue its third series of government-backed digital green bonds using HSBC's blockchain infrastructure. This new offering, previously reported by Bloomberg, has received an AA+ rating from S&P and will be offered in multiple currencies, including dollars, euros, offshore yuan, and HK dollars. The proceeds from this bond sale are intended to finance projects focused on environmental and climate initiatives.

Key Takeaways

Hong Kong is set to launch a new series of blockchain-based green bonds using HSBC's digital infrastructure.
The bonds will be issued in several currencies and have received an AA+ rating from S&P.
Proceeds will fund environmental and climate initiatives, with settlement occurring entirely on blockchain.
This is the third of such digital bonds issued by Hong Kong since 2023, with substantial corporate engagement in blockchain bond offerings.
The region is fostering a robust tokenized asset ecosystem through government support and private innovation.

Hong Kong

These bonds will be fully issued, recorded, and settled on the blockchain, thereby eliminating the need for conventional clearing and settlement methods. Additionally, a built-in fail-safe mechanism will allow the bonds to revert to traditional finance (TradFi) systems if needed.

Expansion of Hong Kong's Tokenized Asset Ecosystem

This marks Hong Kong’s third digital bond issuance since 2023. Furthermore, local corporations have engaged in at least six blockchain-based bond offerings, raising a total of $1 billion so far, according to Bloomberg. Some recent participants include Shenzhen Futian Investment Holdings and Shandong Hi-Speed Holdings Group.

Hong Kong is actively enhancing its tokenized asset ecosystem with a blend of government-backed initiatives, supportive regulations, and innovative contributions from the private sector. In the previous year, the Hong Kong Monetary Authority introduced the Digital Bond Grant Scheme, subsidizing up to 50% of eligible expenses for companies involved in the issuance of tokenized bonds.