Hong Kong Monetary Authority Launches Digital Bond Subsidy Program

According to PANews, the Hong Kong Monetary Authority (HKMA) has officially announced the launch of the 'Digital Bond Subsidy Program' as outlined in the 2024 Policy Address. This initiative aims to foster the development of the digital securities market and encourage broader adoption of tokenization technology in capital markets. Applications for the subsidy program are now open and will initially run for three years. Eligible digital bonds issued in Hong Kong can receive a subsidy of up to HKD 2.5 million per issuance. HKMA Chief Executive Eddie Yue highlighted that over the past decade, more than USD 10 billion in tokenized bonds have been issued globally. Following two successful tokenized bond issuances, the Evergreen project has moved beyond the proof-of-concept stage. The next step involves promoting the broader application of feasible solutions in the market, pushing the boundaries of what is possible. This will be supported by innovative financial market infrastructure, specifically the Ensemble sandbox, to advance the development of Hong Kong's tokenization market. The HKMA is also engaging with the industry to explore use cases for tokenization, focusing on four key areas: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain financing. The initial focus will be on using tokenized deposits as a settlement method for tokenized asset transactions.