The Hong Kong Monetary Authority has convened a Tokenised Bond Expert Group comprising industry representatives to accelerate adoption and scalability of tokenised bonds in the city's financial market.
Announced on June 5, the expert group brings together representatives from industry associations, financial institutions, legal advisory firms, financial infrastructure providers and technology companies with experience in Hong Kong's emerging tokenised bond market.
In its first series of discussions held in May, the group exchanged views on Hong Kong's current legal and regulatory framework and its application to tokenised bond issuance and transactions. The feedback will inform the HKMA's ongoing work with the Financial Services and the Treasury Bureau on reviewing potential enhancements to facilitate broader adoption of tokenisation technology in the fixed income market.
The initiative builds on Hong Kong's track record in digital bond innovation. Since 2021, the HKMA has executed three landmark tokenised bond issuances for the Hong Kong government, including the world's first tokenised government green bond in 2023, the first multi-currency digital bond in 2024, and the largest digital bond issuance at the time of issue in 2025 - which was also the first to integrate tokenised central bank money in the form of e-CNY and e-HKD.
The HKMA is promoting tokenised bond market development through multiple channels, including the Digital Bond Grant Scheme to encourage issuances, the EvergreenHub knowledge repository for capacity building, and ongoing regulatory reforms.
The establishment of the expert group signals Hong Kong's determination to maintain its position as a leading centre for financial innovation in Asia. Tokenisation technology promises to reduce settlement times, lower transaction costs and increase transparency in the bond market, which has traditionally relied on paper-based processes and multiple intermediaries.
The HKMA said it will continue engaging with expert group members on various topics relevant to tokenised bond development and will review and update the group's composition as needed. Details of regulatory enhancements will be announced separately.
