The Hong Kong Mortgage Corporation Limited (HKMC) has achieved a historic milestone in the digital asset space with the successful pricing of its inaugural digital bonds totalling approximately HKD 12 billion. This landmark transaction represents the largest ever digital bond issuance globally and underscores Hong Kong's growing role as a hub for innovative financial instruments.
Announced on June 11, the Issuance was priced in Hong Kong on June 10, 2026, following extensive pre-marketing exercises and investor roadshows. The digital bonds were issued under HKMC's US$30 billion Medium Term Note Programme and were successfully book-built with strong demand from institutional investors.
The issuance marks several significant achievements. First, HKMC becomes the first public sector entity in Hong Kong to issue digital bonds. Second, the 5-year Hong Kong dollar tranche represents the longest tenor ever for an HKD-denominated digital bond, setting a new benchmark in the HKD bond market. Third, this transaction demonstrates the practical utility of tokenisation technology in the fixed income space.
The triple-tranche digital bond issuance comprises HKD 6 billion in 2-year bonds, HKD 2.5 billion in 5-year bonds, and CNH 3 billion in 3-year digital bonds. The offering attracted significant interest from diverse investors including local and Southbound Bond Connect funds, international institutional investors, multilateral development banks, central banks, banks, private banks, and insurance and asset management companies.
The combined peak orderbook reached approximately HKD 24 billion equivalent from more than 100 accounts, demonstrating deep market appetite for digital bond instruments. This strong reception validates the growing maturity and acceptance of blockchain-based financial instruments in Hong Kong's capital markets.
Built on distributed ledger technology, the digital bonds are created and settled on a platform operated by the Central Moneymarkets Unit (CMU), which serves as the clearing and settlement system. This infrastructure provides investors with access via existing CMU systems and linkage to major international clearing houses Euroclear and Clearstream.
Deputy Chief Executive of the Hong Kong Monetary Authority and Executive Director of the HKMC, Mr Howard Lee, stated that by launching tokenised fixed income products, HKMC demonstrates unwavering support for the HKSAR Government's strategic roadmap to cement Hong Kong's position as a global fixed income and currency hub. He emphasised that this milestone helps deepen Hong Kong's digital asset ecosystem and accelerates the adoption of tokenisation technology across the financial sector.
HKMC Executive Director and Chief Executive Officer, Mr Colin Pou, highlighted that the inaugural digital bonds were priced amidst strong market reception, highlighting growing participation from arranging banks and first-time digital bond investors. He noted that this reinforces Hong Kong's distinctive role in bridging traditional finance with the digital asset era, with the HKMC committed to continuing its leadership in developing the local bond market.
The Issuance successfully shortened the settlement cycle from five business days to three business days, offering greater operational efficiency to investors. This improvement, combined with the digitally native format of the bonds, positions HKMC as a pioneer in embracing financial innovation while maintaining the robust regulatory standards expected of Hong Kong's premier fixed-income issuer.
HKMC expressed appreciation for the professional support from 16 joint global coordinators, joint bookrunners, and joint lead managers comprising local and international financial institutions, which played a crucial role in the success of this historic issuance.
Sources: [HKSAR Government]
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