Hong Kong Monetary Authority to launch digital bond funding scheme

The Chief Executive of the Hong Kong Special Administrative Region, John Lee, today delivered his third Policy Address during his term of office. The Hong Kong Monetary Authority announced that it will soon launch a "Digital Bond Subsidy Scheme" to encourage more financial institutions and issuers to adopt tokenization technology in capital market transactions and promote the development of the digital securities market. In addition, the HKMA also allows potential issuers to test business plans and application scenarios through the stablecoin issuer sandbox, and will work with the Treasury Bureau to submit a draft bill to regulate legal currency stablecoin issuers this year, actively test and explore more technical solutions and scenarios related to cross-border trade settlement on multiple central bank digital currency cross-border networks, and expand the participation of public and private institutions.