Blockchain considered for green bond sale in Hong Kong
Hong Kong has enlisted the help of several banks to establish a digital hub for issuing green bonds using blockchain technology, reports Bloomberg. The city is said to be in discussions with HSBC, Credit Agricole, Bank of China, Industrial and Commercial Bank of China, and UBS to form a group that will explore the possibility of issuing a series of fixed-rate digital green bonds. Sources close to the matter have indicated that Hong Kong is considering using a distributed ledger developed by HSBC for the issuance of these digital bonds. The bonds are expected to be denominated in various currencies, including US dollars, euros, offshore yuan, and Hong Kong dollars, with maturities of up to two years.
This move is part of Hong Kong’s strategy to establish itself as a leader in the digital asset space. In 2023, the city saw a significant influx of venture capital funding in blockchain and crypto ventures, with over 11% of global funding directed towards Hong Kong and Singapore, according to crypto.news. This shift in capital flow may be attributed to the collapse of Sam Bankman-Fried’s FTX crypto exchange and its impact on US-based crypto companies. As a result, firms such as CoinFund and Hivemind Capital Partners have expanded their services in Hong Kong to take advantage of the regulatory challenges faced by the industry in the US.
In addition to the green bond initiative, Hong Kong is also planning to allow retail investors to participate in spot ETFs, further solidifying its position as a hub for digital asset investments.
