Hong Kong expands tokenized bonds and digital asset strategy, aiming to become global hub

Hong Kong plans to expand its tokenized bond program, preparing a third batch of tokenized green bonds. The bonds were recorded and settled on distributed ledger technology. Authorities aim to normalize tokenized government bonds in the future, considering tax incentives for wider adoption, including exemptions on stamp duty for transfers of tokenized exchange-traded funds.

Hong Kong unveils new digital asset strategy with a focus on regulating stablecoins and promoting asset tokenization through its “LEAP” framework. The government will implement a licensing regime for stablecoin issuers starting Aug. 1, consulting the public on proposed licensing rules for digital asset trading platforms and custodians. HKEX launched the city’s first digital asset indexes for Bitcoin and Ethereum.

Hong Kong’s financial regulators announced plans to roll out digital asset derivatives trading for professional investors. This follows recent approvals for spot cryptocurrency ETFs, futures products, and staking services. In May, the Legislative Council passed the Stablecoin Bill, setting the stage for a regulated environment to establish Hong Kong as a global hub for digital assets and Web3 innovation.

Read more at Cointelegraph: Hong Kong Prepares Third Tokenized Bond Issuance, Eyes More Offerings