The Hong Kong Monetary Authority will launch a digital bond subsidy scheme

Hong Kong Special Administrative Region Chief Executive Lee Ka-chiu released his third policy address today, in which the Hong Kong Monetary Authority announced the upcoming launch of a "Digital Bond Subsidy Scheme". This scheme encourages more financial institutions and issuers to adopt tokenization technology in capital market transactions, promoting the development of digital securities markets.

In addition, through a stablecoin issuer sandbox, the Monetary Authority allows potential issuers to test business plans and application scenarios. Together with the Treasury Department, they will submit draft regulations this year to regulate fiat stablecoin issuers. They are actively testing and exploring more technical solutions and scenarios related to cross-border trade settlement on various central bank digital currency cross-border networks, expanding participation from both public and private sector institutions.