Hong Kong to Launch Third Tokenised Bond With Zero Stamp Duty on ETFs

Key Points

1. Hong Kong launched 'Project Genesis' in 2021, issuing its first tokenized green bond worth HK$800 million in February 2023 and a multi-currency digital bond totaling HK$6 billion in February 2024.

2. The third tokenized bond initiative enables fractional ownership and 24/7 trading, improving liquidity for traditionally illiquid assets.

3. Stamp duty exemption for tokenized ETFs provides a financial incentive for investors.

4. Hong Kong faces challenges such as integrating blockchain with traditional finance, ensuring regulatory compliance (KYC/AML), and managing risks in the digital asset space.

5. The strategy aims to position Hong Kong as a global hub for digital finance and Web3 innovation.