HKMA Plans Second Tokenised Green Bonds Release

HKMA Plans Second Tokenised Green Bonds Release

by December 5, 2023

The Hong Kong Monetary Authority (HKMA) is set to issue a second batch of tokenised green bonds, announced by Chief Executive Eddie Yue Wai-man.

This follows the initial issuance of HK$800 million in tokenised green bonds by the Hong Kong government earlier this year. Distributed through a four-bank syndicate, this HKD-denominated bond leveraged Goldman Sachs’ tokenisation platform, GS DAPTM.

The Central Moneymarkets Unit (CMU) of the HKMA facilitated clearing and settlement, utilising a private blockchain network.

Eddie YueTokenised Green Bonds

Eddie Yue

Speaking at a recent summit, Eddie also mentioned the exploration of blockchain technology for the full lifecycle of bond issuance, from creation to redemption.

The announcement comes as the HKMA is reportedly advising local banks to increase provisions for non-performing loans in response to the ongoing property market downturn in China.

In addition, Eddie expressed optimism about the growth of the cross-boundary wealth management connect scheme, anticipating a surge in investor numbers following proposed enhancements. The scheme has attracted around 50,000 investors, with investments totalling 3.4 billion yuan (HK$3.71 billion).