News
  • Zameer Attar
    author-profile

    Zameer Attar right arrow

    Author

    Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.

    • Reviewed by: Qadir AK

      author profile

      Qadir AK right arrow

      Reviewed

      Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

      • author facebook
      • author twitter
      • author linkedin
    • 2 minutes read

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

    Story Highlights
    • Hong Kong Launches 3rd Tokenised Bond: The new issuance includes stamp duty exemptions and asset expansion into metals and solar panels.

    • Pushing Toward a Web3 Future: Hong Kong aims to become a global digital asset hub with 24/7 trading, fractional ownership, and tokenised ETFs.

    Hong Kong is going all-in on Web3. After two successful tokenised green bond issuances, the city-state is preparing to roll out its third tokenised government bond — now with a stamp duty exemption for tokenised ETFs.

    This strategic move aims to solidify Hong Kong’s position as a global digital asset hub. At the same time, the city is actively exploring tokenisation of real-world assets like precious metals, non-ferrous metals, and solar panels.

    Hong Kong’s Tokenised Bond Journey: From Pilot to Global Model

    The journey began in 2021 with “Project Genesis,” a proof-of-concept initiative with the Bank of International Settlements to explore tokenised green bonds.

    • February 2023: First tokenised green bond worth HK$800 million
    • February 2024: Second issuance — a multi-currency digital bond totaling HK$6 billion in HKD, RMB, USD, and EUR

    These initiatives laid the foundation for Hong Kong’s third issuance, which now takes the vision further with tax exemptions and real asset expansion.

    What’s New in the Third Tokenised Bond?

    • Stamp Duty Exemption: Tokenised ETFs will now be exempt from stamp duty, creating cost advantages for investors
    • Asset Expansion: Tokenisation to include precious metals, non-ferrous metals, and solar panels

    This will enable fractional ownership and 24/7 access to traditionally illiquid asset classes, opening new doors for global investors.

    Key Benefits of the Strategy

    • Fractional ownership allows more investors to participate in high-value markets
    • 24/7 trading brings liquidity and efficiency to bond and asset markets
    • Stamp duty exemption offers a financial incentive to invest in tokenised ETFs
    • Broader asset tokenisation supports market democratisation

    Challenges Hong Kong Must Navigate

    • Traditional financial systems need to integrate blockchain infrastructure
    • Blockchain platforms must prove resilience, scalability, and cross-chain compatibility
    • Regulatory challenges grow with the need for investor protection, KYC/AML compliance, and risk management

    Final Thoughts

    With tax incentives and an expanding scope of tokenized offerings, Hong Kong is setting the stage for the next phase of digital finance. However, its success will depend on how well it aligns with international regulations and scales secure blockchain infrastructure for global adoption.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    What exactly is a tokenized government bond, and how does it work?

    A tokenized government bond is a digital representation of a traditional sovereign bond issued on a blockchain. Each token represents fractional ownership of the bond. Smart contracts automate processes like issuance, interest payments, and redemption, enhancing liquidity, transparency, and efficiency by reducing intermediaries and enabling 24/7 trading.

    What challenges must Hong Kong overcome for its Web3 strategy to succeed?

    Hong Kong must navigate challenges such as integrating blockchain infrastructure with traditional financial systems, ensuring blockchain platforms are resilient, scalable, and cross-chain compatible, and addressing regulatory complexities related to investor protection, KYC/AML compliance, and risk management in the evolving digital asset space.

    Show More

    Related Articles

    Back to top button