The Government of Hong Kong is preparing to sell digital green bonds to ensure faster payments and smooth settlement of monetary transactions. The government has hired banks to arrange its debut sale of digital green bonds.
The administration is looking forward to raising HK$800 million and has tapped banks like Goldman Sachs, Bank of China, Credit Agricole S.A., and HSBC Holdings to facilitate the transaction.
The beneficial interests in the notes will be recorded on a distributed ledger technology provided by the banks. The blockchain technology powered platform will offer quicker settlement and the coupon payments will also be faster.
Joseph Chan, Hong Kong’s Acting Secretary for Financial Services and the Treasury, said that “The planned tokenized green bond will be a pilot issuance to test out the compatibility of the city’s existing legal and regulatory framework, financial infrastructure, and market operational practice with tokenized issuances.”
Hong Kong has been pursuing a plan to become Asia’s Crypto hub. The planned note sale also continues Hong Kong’s efforts to become a hub for sustainable financing.
Also Read: Hong Kong to Issue World’s First Tokenized Green Bonds
