Hong Kong issues third blockchain bond offering to cement crypto hub status

Key Takeaways

What makes Hong Kong’s blockchain bond offering significant?

Hong Kong is issuing its third tokenized bond across four currencies [USD, HKD, EUR, offshore yuan] using HSBC’s distributed ledger technology.

How does this fit into Hong Kong’s crypto hub strategy?

The blockchain bonds are part of a comprehensive 2025 push, including stablecoin licensing in August, and Asia’s first crypto ETFs [$500M AUM].

Hong Kong is marketing its third blockchain bond offering across four currencies as the city intensifies efforts to become Asia’s leading crypto hub. 

The government plans to sell tokenized green bonds denominated in U.S. dollars, Hong Kong dollars, euros, and offshore yuan. The deal could price as early as Monday, according to a Bloomberg report.

This marks Hong Kong’s third blockchain-based bond sale since 2023.

Blockchain bonds bridge traditional finance and crypto

Hong Kong is utilizing blockchain bonds to demonstrate that distributed ledger technology can drive institutional-grade finance. The strategy goes beyond crypto-native innovation. 

The city is digitizing traditional financial products to demonstrate to mainstream institutions that blockchain infrastructure is effective for regulated securities. The approach is paying off. 

Six corporate issuers have raised $1 billion through tokenized bonds in Hong Kong this year.

State-backed Chinese companies Shenzhen Futian Investment Holdings and Shandong Hi-Speed Holdings recently priced blockchain bonds in the city.

Hong Kong crypto hub strategy gains momentum

The blockchain bond offering fits into Hong Kong’s comprehensive push to dominate Asia’s crypto landscape. The city has rolled out multiple digital asset initiatives throughout 2025.

In August, the Hong Kong Monetary Authority launched a licensing regime for stablecoin issuers. The new rules require any entity issuing fiat-referenced stablecoins to obtain HKMA approval.

Hong Kong approved Asia’s first spot Bitcoin and Ethereum ETFs in April 2024. In October, it also approved spot Solana ETF, ahead of the U.S. These crypto ETFs now hold over $500 million in assets under management. 

The ETFs give retail and institutional investors regulated access to cryptocurrency without directly holding tokens.

Competing in global crypto race

Hong Kong’s accelerated crypto hub push responds to shifting global dynamics.

Asian policymakers are racing to match U.S. President Donald Trump’s pro-crypto policies, which have made America increasingly attractive for digital asset businesses.

The city offers compelling advantages. Hong Kong maintains 0% capital gains tax on crypto for individuals.

Also, the government recently waived taxes on cryptocurrency investment gains for hedge funds and private equity firms.

Blockchain bonds legitimize crypto infrastructure

While these tokenized bonds use private blockchain infrastructure rather than public networks like Ethereum, they legitimize distributed ledger technology for traditional finance. 

Success with government blockchain bonds could accelerate tokenization of other real-world assets.