Hong Kong Explores Expanded Tokenized Bond Issuance and Digital Asset Strategy Featuring Bitcoin Indexes

Key Points

1. Hong Kong has successfully leveraged distributed ledger technology in government debt issuance in 2023 and 2024, signaling a shift toward normalizing tokenized bonds.

2. The Digital Asset Development Policy Declaration 2.0 introduces the LEAP framework, focusing on Legal clarity, Ecosystem growth, Adoption, and People development.

3. Hong Kong Exchanges and Clearing (HKEX) has launched the city’s first digital asset indexes for Bitcoin and Ethereum to enhance market infrastructure for institutional investors.

4. Hong Kong is advancing its digital finance ecosystem with approvals for spot cryptocurrency ETFs, futures products, and staking services, exemplified by HashKey’s authorization.

5. The passage of the Stablecoin Bill by the Legislative Council in May aims to solidify Hong Kong’s position as a global hub for digital assets and Web3 innovation.