The Hong Kong Financial Authority has launched a three-year digital bond grant scheme, providing incentives of up to HK$2.5 million to encourage tokenized bond issuances.
In its latest bid to drive blockchain adoption, Hong Kong has launched a new scheme geared toward fueling the expansion of tokenized bonds, reinforcing its position within the digital monetary revolution. The initiative, introduced in Hong Kong’s 2024 Coverage Tackle, goals to speed up the adoption of tokenization in capital market transactions and bolster the town’s position as a hub for digital securities.
In a Nov. 28 press launch, the HKMA introduced that the Digital Bond Grant Scheme will settle for purposes for 3 years, providing monetary assistance of as much as HK$2.5 million (around $321,200) to issuers who meet the eligibility standards outlined within the new guideline.
The DBGS is a part of the HKMA’s broader efforts to advertise blockchain use in monetary markets. In August, the HKMA launched Challenge Ensemble, a sandbox for testing tokenized real-world belongings. The sandbox has already been used to trial digital bond purchases and interbank settlements with tokenized deposits, involving main gamers like HSBC and HashKey Group.
Tokenization, which involves representing belongings on a blockchain as digital tokens, has gained traction amongst financial establishments looking for efficiencies in areas such as fast-growing revenue, inexperienced finance, and commerce finance. By fostering such initiatives, Hong Kong hopes to become a frontrunner in blockchain-enabled financial innovation throughout Asia-Pacific.
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