Hong Kong is preparing to issue a new batch of government-backed digital green bonds, deepening its move toward blockchain-based finance as it attempts to position itself as a leading global hub for tokenized assets.
The offering, Hong Kong’s third digital bond sale since 2023, will be denominated in US dollars, euros, offshore yuan and Hong Kong dollars, Bloomberg reported citing sources familiar with the matter. The price could be finalized as early as today.
These are so-called digitally native bonds, meaning they are entirely created and settled on blockchain-based platforms. The infrastructure for this latest issue will come from HSBC.
The green label indicates that the funds raised will be used for environmental or climate-focused projects. The city is working to become a blockchain hub, while facing competition from other regions, including Singapore and Dubai.
The appetite for blockchain-based debt appears to be growing. So far, companies have issued at least six token bonds in the city, raising a total of $1 billion, according to the report.
Recent issuers include state-backed companies like Shenzhen Futian Investment Holdings and Shandong Hi-Speed Holdings Group.
S&P has assigned the notes an AA+ rating. According to the company, the risks of digital issuance are mitigated by built-in security that allows bonds to flow back into traditional systems if necessary.
