On November 28 the Hong Kong Monetary Authority (HKMA)central bank of hong kong, inserted the Digital Bond Grant Scheme (DBGS) program encourage the use of tokenized bonds in their financial markets.
The DBGS is designed to cover up to 50% of eligible expenses for companies issuing tokenized bondswith a maximum subsidy of about $321,184 (HK$2.5 million).
Businesses can apply for a full grant or a half grant.depending on the nature of its emission.
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the full subsidy Requires bonds to meet specific criteria.including a minimum issue size of $128.5 million, distribution to at least five investors and listing on the Hong Kong Stock Exchange or another platform authorized by local regulators.
For companies that opt for half the subsidy, the The requirements are less strict.—Bonds must be issued digitally through the Central Monetary Markets Unit (CMU) and be issued by a company with a strong presence in Hong Kong.
Applications for the program will be accepted for an initial period of three years. During this time, the HKMA will observe how the market responds and will be able to refine the program based on feedback.
In the announcement, the HKMA stated:
The DBGS aims to promote the development of the digital securities market and encourage wider adoption of tokenization technology in capital market transactions.
The DBGS was born from Project Evergreena research initiative launched in 2021 to explore how distributed ledger technology could be applied in financial markets.
The HKMA’s push toward tokenization reflects its growing interest in digital innovation, but the story doesn’t end there. Recently, ZA Bank, Hong Kong’s largest virtual bank, has integrated digital assets such as Bitcoin and Ethereum into its services. How is this reshaping the city’s financial landscape? Read the full story.
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