Hong Kong is preparing to market a new series of “digitally native” bonds denominated in multiple currencies, further advancing its ambitions to become a leading global centre for digital assets.
According to Bloomberg, the government plans to issue digital green bonds denominated in US dollars, Hong Kong dollars, euros, and offshore yuan, people familiar with the matter said.
The sale could be priced as early as Monday (November 10), they added, requesting anonymity as the information is private.
If completed, it would mark Hong Kong’s third digital bond issuance since 2023.
Digital bonds are debt instruments that employ blockchain technology for issuance, trading, and settlement.
They can be issued via distributed ledger technology (DLT) platforms provided by institutions such as HSBC or Goldman Sachs, or on public blockchains like Ethereum, which may offer greater flexibility.
The digital bond market has gained traction in Hong Kong as authorities move to promote tokenised debt issuance, part of a wider regional effort to embrace digital assets amid US President Donald Trump’s pro-crypto policies.
Beyond the government’s sales, at least six digital bonds have been issued by corporations in the city, raising a combined total of about US$1 billion, with four of those offerings taking place this year.
Recent issuers include state-backed mainland Chinese firms Shenzhen Futian Investment Holdings and Shandong Hi-Speed Group.
The latest Hong Kong government notes will be recorded and cleared using HSBC’s DLT platform.
S&P has assigned the proposed securities an AA+ rating, said Rain Yin, a director at the firm.
While such instruments involve certain novel risks, “those are mitigated by a plan that requires, ultimately, shifting the notes to the traditional systems in case of disruption,” he said.
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