Hong Kong will issue the third batch of "green" bonds based on blockchain: Bloomberg

Hong Kong is preparing to issue a new batch of state-backed digital "green" bonds, which indicates its ambition to become a leading global center for tokenized assets.

According to Bloomberg, citing sources familiar with the situation, the third sale of digital bonds in Hong Kong in 2023 will be conducted in US dollars, euros, offshore yuan, and Hong Kong dollars. The final price may be determined as early as today.

These are so-called digital bonds, meaning they are created and serviced exclusively on blockchain-based platforms. The infrastructure for this issuance will be provided by HSBC.

The green icon indicates that the collected funds will go towards projects related to environmental or climate protection. The city aims to become a blockchain hub but faces competition from other regions, including Singapore and Dubai.

It seems that the demand for blockchain-based debt securities is growing. According to the report, at least six tokenized bonds have been issued in the city so far, totaling 1 billion dollars.

Among the recent issuers were state-supported companies such as Shenzhen Futian Investment Holdings and Shandong Hi-Speed Holdings Group.

S&P has assigned a rating of AA+ to the bonds. According to the company, the risks associated with the digital issuance are offset by the security system that allows for the bonds to be transferred back to traditional systems if necessary.