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HKMA’s Support for Tokenized Bonds
The Hong Kong Monetary Authority (HKMA) is funding companies issuing tokenized bonds under the Digital Bond Grant Scheme (DBGS), launched on Nov. 28. This program reimburses up to 50% of eligible costs, capped at $321,184, for up to two issuances per company.
Key Eligibility Criteria
Half Grant: For bonds issued via the CMU platform by companies with a strong Hong Kong presence.
Full Grant: Requires bonds worth at least $128.5 million, five investors, and listing on SEHK or an approved platform.
The scheme runs for three years and aims to drive tokenization across markets.
Tokenized Bonds: A Growing Trend
Launched after HKMA’s Project Evergreen research, this program addresses challenges in tokenized bond adoption. Eddie Yue, HKMA’s chief, pointed to growing interest, with over $10 billion in tokenized bonds issued globally.
In February 2023, Hong Kong led by example, issuing $100 million in tokenized green bonds.
Expanding Crypto Initiatives
The city is also considering tax exemptions for crypto gains to attract hedge funds, private equity, and family offices. On Nov. 25, ZA Bank launched a fiat-based Bitcoin and Ether trading service, reinforcing Hong Kong’s position as a crypto hub.
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