Hong Kong Enlists HSBC, UBS Group For Tokenized Bonds Sale

• Hong Kong is exploring the possibility of issuing green bonds managed using ledger technology.
• The government is actively in talks with five financial institutions regarding the program. 
• The bonds will be denominated in multiple currencies.

Hong Kong has remained committed to its aspirations of emerging as a leading digital hub in the burgeoning digital ecosystem. In February 2023, the Monetary Authority of Hong Kong issued an initial sale of tokenized green bonds to institutional investors, marking a bold stride in its efforts to foster technology adoption within the region.

Building on the momentum, the government is considering issuing a second tranche of blockchain-based digital bonds.

Five Banks To Propel Hong Kong’s Second Green Bond Sales

According to a Bloomberg report on December 15, the Hong Kong government has enlisted five financial institutions to oversee the management of a multi-series fixed rate “digitally native” green bond issuance. 

The report cited unnamed sources and stated that the institutions include UBS Group AG , Credit Agricole CIB, HSBC Holdings Plc , Bank of China (Hong Kong) Industrial, and the Commercial Bank of China (Asia) Ltd.

The bonds will reportedly be recorded and cleared through a distributed ledger technology platform provided by HSBC, and each partner will utilize their platforms to record the issuance of tokenized securities.

With tenors of up to two years, the bonds will be denominated in Dollars, Euros, offshore Yuan, and the Hong Kong dollar, HKD.

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