Key Takeaways:
- Hong Kong launches its third blockchain bond in USD, HKD, EUR, and offshore yuan.
- Blockchain bonds bridge traditional finance and crypto, attracting institutional interest.
- The city’s crypto initiatives include stablecoin licensing and Asia’s first crypto ETFs.
- Tax incentives and regulatory clarity make Hong Kong an attractive hub for digital assets.
Crypto in Hong Kong is gaining momentum as the city launches its third blockchain bond offering. The government plans to issue tokenized green bonds denominated in U.S. dollars, Hong Kong dollars, euros, and offshore yuan, signaling a continued commitment to digital finance innovation. The deal could price as early as Monday, according to Bloomberg reports.
Bridging Traditional Finance and Crypto
The city’s blockchain bond initiative demonstrates how distributed ledger technology can serve institutional-grade finance. By digitizing traditional financial products, Hong Kong aims to show mainstream institutions that blockchain infrastructure is effective for regulated securities.
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This strategy is already delivering results. Six corporate issuers have raised $1 billion through tokenized bonds in Hong Kong this year alone. State-backed Chinese firms, including Shenzhen Futian Investment Holdings and Shandong Hi-Speed Holdings, recently issued blockchain bonds in the city, underscoring growing institutional adoption.
A Comprehensive Crypto Hub Strategy
The third blockchain bond fits into Hong Kong’s broader 2025 digital asset push. In August, the Hong Kong Monetary Authority (HKMA) introduced a licensing framework for stablecoin issuers, requiring any entity issuing fiat-referenced stablecoins to secure regulatory approval.
Earlier, in April 2024, Hong Kong approved Asia’s first spot Bitcoin and Ethereum ETFs, followed by a spot Solana ETF in October—outpacing the U.S. These regulated ETFs now hold over $500 million in assets under management, providing both retail and institutional investors with safe exposure to digital assets without holding tokens directly.
Competing in the Global Crypto Race
Hong Kong’s accelerated strategy reflects global competition. With pro-crypto policies in the U.S. attracting digital asset businesses, Hong Kong is positioning itself as an equally compelling alternative. Advantages include 0% capital gains tax on cryptocurency for individuals and tax exemptions on crypto investment gains for hedge funds and private equity firms.
Also Read: How to Buy Goods with Crypto in 2025
Blockchain bonds, even on private networks rather than public chains like Ethereum, validate distributed ledger technology for traditional finance. Success with these tokenized bonds could pave the way for the broader tokenization of real-world assets, reinforcing Hong Kong’s leadership in digital finance.
