Hong Kong is ramping up efforts to integrate blockchain into its financial markets, announcing plans for a third issuance of tokenized green bonds as part of a wider strategy to lead Asia’s digital finance sector.
Speaking at the Hong Kong Digital Finance Awards 2025, Secretary for Financial Services and the Treasury Christopher Hui confirmed that the upcoming bond sale will build on the momentum from earlier issuances in 2023 and 2024, both of which were settled on distributed ledger technology.
The latest tranche will again leverage tokenization to enhance transparency, settlement speed, and accessibility. Hui emphasized that the government aims to make these digital bonds a regular fixture in its debt portfolio going forward.
To drive adoption, officials are also exploring tax incentives for investors, including exemptions on stamp duties when transferring tokenized exchange-traded funds. The move is part of a broader effort to signal regulatory support and position Hong Kong as a leader in financial innovation.
New Digital Asset Policy Sets Roadmap for Tokenization and Stablecoins
The expansion of tokenized bonds is just one pillar of Hong Kong’s recently unveiled Digital Asset Development Policy Declaration 2.0, a sweeping framework that outlines how the city plans to cultivate a mature crypto and Web3 ecosystem.
At the heart of the new policy is the “LEAP” framework, which stands for Legal clarity, Ecosystem development, Adoption in real-world use cases, and People—emphasizing talent cultivation. The strategy aims to balance innovation with strong regulatory standards to attract both startups and institutional investors.
Beginning August 1, Hong Kong will implement a dedicated licensing regime for stablecoin issuers. Officials say the rules are designed to establish clear standards for reserve management and consumer protection while encouraging the creation of practical use cases, such as cross-border payments and decentralized finance applications.
The government is also seeking public feedback on proposed licensing requirements for digital asset trading platforms and custodians. The consultation period runs through the end of August, reflecting Hong Kong’s push to incorporate industry and community input into policymaking.
Meanwhile, Hong Kong Exchanges and Clearing (HKEX) has launched the city’s first onshore digital asset indexes, providing real-time benchmarks for Bitcoin and Ethereum prices during Asian trading hours—an effort to bolster transparency and attract capital from professional investors.
Crypto Derivatives and Stablecoin Law Cement Hong Kong’s Position
Beyond spot market initiatives, Hong Kong is preparing to roll out digital asset derivatives products aimed at professional investors, building on recent approvals for spot cryptocurrency ETFs, futures contracts, and staking services.
In April, HashKey became the first licensed firm in the city to offer staking, marking another milestone as regulators greenlight a broader range of services to diversify the market.
The city’s ambitions were further solidified in May, when the Legislative Council passed the Stablecoin Bill, setting a clear regulatory foundation for issuing and managing stablecoins within Hong Kong’s jurisdiction.
These measures are designed to reinforce the city’s status as a global digital asset hub, competing with Singapore and other Asian financial centers to attract blockchain firms and institutional funds.
Policymakers believe that by pairing robust regulations with an innovation-friendly environment, Hong Kong can establish itself as the leading gateway for tokenized finance and Web3 services across Asia.
Quick Facts
- Hong Kong is preparing a third issuance of tokenized green bonds on blockchain infrastructure.
- A new policy framework will regulate stablecoins and promote digital asset adoption starting this year.
- The Stablecoin Bill and plans for derivatives trading underline the city’s ambition to become Asia’s digital finance leader.
