The Hong Kong Monetary Authority (HKMA) has launched a Digital Bond Grant Scheme (DBGS) to subsidize the costs for companies issuing tokenized bonds, with the goal of increasing the adoption of tokenization in capital markets. The scheme, which started accepting applications on November 28, will subsidize up to 50% of eligible expenses, capped at 2.5 million Hong Kong dollars for full grants and 1.25 million for half grants. To qualify, bonds must be issued digitally on certain platforms and meet specific size and listing criteria. The initiative follows previous efforts by the HKMA, including the issuance of $100 million in tokenized green bonds earlier in 2024. HKMA Chief Executive Eddie Yue noted that the DBGS aims to help overcome barriers to the adoption of tokenized bonds, as global estimates indicate over $10 billion in tokenized bonds have been issued to date. Additionally, the Financial Times reported that the city is considering crypto tax exemptions to enhance its status as a crypto hub.

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