Hong Kong Central Bank to Subsidize Companies Issuing Tokenized Bonds

The Hong Kong Monetary Authority (HKMA) has launched a program to subsidize part of the costs of issuing tokenized bonds, aiming to encourage greater adoption of tokenization in its capital markets. According to a Nov. 28 announcement and accompanying guidelines, the HKMA’s Digital Bond Grant Scheme (DBGS) will subsidize up to 50% of “qualified expenses” for each eligible digital bond issuance, subject to a maximum amount. “DBGS aims to promote the development of the digital securities market and encourage the wider adoption of tokenization technology in capital market transactions,” the HKMA said in a statement.