The Hong Kong Monetary Authority (HKMA) has established a Tokenised Bond Expert Group aimed at advancing the adoption and scalability of tokenised bonds in Hong Kong’s financial markets.
According to the announcement on June 5, the group brings together representatives from industry associations, financial institutions, legal advisory firms, as well as financial infrastructure and technology providers. The initiative is designed to support collaboration between market participants as Hong Kong continues developing its tokenized fixed-income ecosystem.
According to the HKMA, the Expert Group will explore policy measures, market practices, regulatory considerations, and technological innovations that could help accelerate the growth of the tokenised bond market.
Industry collaboration to support market development
The expert collective, which includes major financial players like HSBC, Standard Chartered, and Bank of China (Hong Kong), alongside digital asset firms and legal giants, held its first foundational series of discussions in May. Members exchanged views on Hong Kong’s existing legal and regulatory framework and how it applies to tokenised bond issuance and transactions.
Feedback gathered during these discussions is expected to assist the HKMA and the Financial Services and Treasury Bureau in reviewing potential enhancements to Hong Kong’s legal and regulatory framework.
The central bank said the group will continue meeting regularly to examine issues related to tokenised bond development and may adjust its membership as the market evolves.
Building on previous tokenisation initiatives
The creation of the Expert Group is the latest step in Hong Kong’s broader tokenisation strategy, which has been developing over several years.
Hong Kong’s journey into bond tokenisation began in 2021 through a joint proof-of-concept project between the HKMA and the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre.
In August 2024, the HKMA launched Project Ensemble Sandbox, a regulatory testing environment designed to explore asset tokenization and wholesale central bank digital currency (wCBDC) settlement. The initiative enabled banks and industry participants to test tokenized deposits, tokenized assets, and programmable payment mechanisms across multiple use cases.
The authority has since overseen several landmark digital bond issuances by the Hong Kong SAR Government, including the world’s first tokenised government green bond in 2023, a multi-currency digital bond issuance in 2024, and a digital bond issuance in 2025 that integrated tokenised central bank money through e-CNY and e-HKD, while also becoming the largest digital bond issuance at the time.
Regulatory framework remains a key focus
Alongside market development efforts, the HKMA has continued working on regulatory reforms intended to support wider adoption of tokenization technology.
The authority noted that feedback from the Expert Group will contribute to its ongoing review of Hong Kong’s legal and regulatory framework, with the goal of facilitating broader use of tokenised assets in fixed-income markets.
Additional initiatives supporting the sector include the Digital Bond Grant Scheme, which encourages tokenised bond issuance, and EvergreenHub, a knowledge-sharing platform designed to strengthen industry expertise and technical capacity.
Hong Kong expands its digital finance ambitions
The establishment of the Tokenised Bond Expert Group highlights Hong Kong’s continued efforts to position itself as a leading hub for digital finance and real-world asset tokenization.
By bringing together regulators, financial institutions, legal experts, and technology providers, the HKMA aims to address practical barriers to adoption while supporting the transition from pilot projects toward broader institutional use of tokenized financial instruments.
The initiative represents another milestone in Hong Kong’s long-term strategy to modernize capital markets through blockchain-based infrastructure and regulated digital asset innovation.
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