Hong Kong plans to grow its digital finance sector with new tokenized bonds and crypto rules.
- The city will issue a third batch of tokenized green bonds in 2025.
- A new licensing program for stablecoins begins on August 1.
- Hong Kong targets wider use of digital assets through legal reforms.
New Tokenized Bonds on the Way
Hong Kong is preparing to release its third round of tokenized green bonds. These bonds use blockchain technology to track and settle transactions. The move builds on two previous sales in 2023 and 2024. Government officials say they want to make this a normal way to raise money.
To help this plan, they are also looking at tax breaks. One idea is to end stamp duty on trades of tokenized exchange-traded funds (ETFs). This could increase interest from investors and make digital bonds more popular across the region.
Stablecoin Regulation Coming Soon
As part of its new Digital Asset Development Policy 2.0, Hong Kong will regulate stablecoins. A licensing system for stablecoin issuers starts on August 1. Officials say this will support projects that use crypto in the real world.
At the same time, the public can give feedback on new laws for crypto platforms and companies that hold digital assets. The open comment period ends in August. These changes will set clear rules for how companies can operate in the crypto space.
Focus on Institutional Investment
The Hong Kong Exchanges and Clearing (HKEX) has launched digital indexes for Bitcoin and Ethereum. These indexes show market prices during Asian trading hours. The goal is to attract large investors by offering reliable local pricing data.
The city also allowed more services like staking and derivatives trading aimed at professional investors. This follows the launch of spot crypto ETFs earlier this year. In April, the firm HashKey got approval to offer staking services, showing Hong Kong’s fast progress in crypto finance.
Hong Kong’s Larger Goal
The recent Stablecoin Bill passed in May paves the way for more laws and controls. Hong Kong wants to become a leader in digital finance and Web3 development. The government’s wide strategy shows strong support for new crypto tools and clear market rules.
Source: cointelegraph.com
