Hong Kong’s HKMA Launches Grant to Accelerate Bond Tokenization
Date: 2024-11-29 Author: Henry Casey Categories: BLOCKCHAIN, IN WORLD
In a bid to strengthen its position in the digital finance space, the Hong Kong Monetary Authority (HKMA) has unveiled a three-year grant scheme to promote tokenization in capital transactions. The initiative, announced as part of the 2024 Policy Statement, aims to popularize the use of blockchain technology and underscores the city’s ambition to become a digital securities hub.
According to a press release on November 28, the HKMA will open applications for the Digital Bond Grant Scheme (DBGS), which will run for three years. The program offers financial support of up to HK$2.5 million (approximately US$321,200) to issuers that meet the criteria.
The initiative is part of the HKMA’s broader strategy to embrace blockchain in financial markets. In August 2024, the HKMA launched Project Ensemble, a sandbox for testing tokenized real assets. The project has already successfully tested digital bonds and bank-to-bank settlements using tokenized deposits. Major players such as HSBC and HashKey Group are among the participants in the trial.
Tokenization, which is the process of converting assets into digital tokens on the blockchain, has attracted the attention of financial institutions due to its increased efficiency in areas such as fixed income, green finance, and trade finance. Hong Kong aims to lead blockchain finance innovation in the Asia-Pacific region by supporting such projects.
With this initiative, Hong Kong not only demonstrates its commitment to blockchain development, but also strengthens its appeal to investors willing to take advantage of tokenized financial instruments.
