tl;dr
Hong Kong is set to issue its third batch of tokenized green bonds, promoting the normalization of tokenized government bonds and real-world asset tokenization. The government offers incentives like stamp duty exemptions on tokenized ETFs. Following previous issuances in 2023 and 2024, plans include...
Hong Kong is preparing to issue its third batch of tokenized green bonds, continuing efforts to normalize the issuance of tokenized government bonds and encourage the tokenization of real-world assets (RWAs). The government offers incentives such as exempting stamp duty on the transfer of tokenized exchange-traded funds (ETFs). Secretary for Finance and Treasury, Christopher Hui Ching-yu, confirmed that after two previous issuances in 2023 and 2024, the next tokenized green bonds are underway. The government aims to extend tokenization to various asset types, including precious and non-precious metals and renewable energy sectors like solar panels.
Amid mainland China's cautious stance on digital assets beyond its digital yuan, Hong Kong is aggressively positioning itself as a regional digital asset hub. The Hong Kong Monetary Authority (HKMA) launched an incubator program supporting local banks in developing blockchain products, focusing heavily on tokenization technology. Alongside this, the HKMA introduced a stablecoin sandbox in 2023 to foster innovation while managing risk.
In May 2025, Hong Kong made a landmark move by passing the ‘Stablecoin Ordinance,’ becoming the first major economy with a comprehensive law dedicated to stablecoins. The ordinance requires stablecoin issuers to obtain licenses, maintain one-to-one backing with high-quality liquid assets, ensure clear redemption rights, and implement strong anti-money laundering measures. It also imposes stringent capital requirements, including a paid-up capital minimum of HKD25 million ($3.19 million) for non-bank issuers and mandates reserve assets matching the par value of outstanding coins.
June 2025 saw further strides with the Securities and Futures Commission (SFC) planning to allow digital asset derivatives for professional investors, enhancing Hong Kong's fintech offerings. The government also released the “Policy Statement 2.0 on the Development of Digital Assets in Hong Kong,” reinforcing its commitment through the introduction of the ‘LEAP’ framework, which consolidates regulatory oversight on stablecoins and asset tokenization and unifies rules for virtual asset service providers (VASPs).
Christopher Hui emphasized that the evolving regulatory framework aims to balance risk management, investor protection, and industry growth to support sustainable digital asset development. With the upcoming issuance of the third batch of tokenized green bonds and comprehensive policy support, Hong Kong is setting a strong example for jurisdictions eager to leverage the potential of the digital asset landscape.