The government of Hong Kong has successfully sold $750 million worth of digital green bonds in a move aimed at reinforcing its position as a leading digital-asset hub. The two-year tokenized notes were issued in offshore Chinese yuan, Hong Kong dollar, US dollar, and euro, featuring coupons ranging from 2.9% to 4.625%.
The groundbreaking issuance utilized HSBC Holdings Plc’s tokenization platform, HSBC Orion, known for its potential to expedite settlement processes through blockchain-powered platforms, bypassing traditional clearing systems. This not only ensures swifter transaction settlements but also facilitates faster coupon payments.
The anonymous insiders confirmed that the Hong Kong government, considering additional digital green bonds since late last year, has taken a significant step towards promoting sustainable finance. This initiative follows the city’s earlier success in February, where it raised HK$800 million ($102 million) through its first-ever digital green bond sale, contributing to the financing of environmentally beneficial projects. This latest move underscores Hong Kong’s commitment to fostering a greener future while embracing the transformative potential of digital assets in the global financial landscape.