Hong Kong mulls green bond sale using blockchain

Hong Kong has reportedly employed a gaggle of banks to assist arrange a digital hub to concern inexperienced bonds utilizing blockchain know-how.

In response to a Bloomberg report, the town is in talks with HSBC, Credit score Agricole, Financial institution of China, Industrial and Industrial Financial institution of China and UBS to ascertain a gaggle geared toward exploring the potential for a multi-series mounted charge digital inexperienced bond issuance.

As per sources near the matter, Hong Kong is weighing issuing digital bonds on a distributed ledger developed by HSBC. The digital bonds are anticipated to be denominated in U.S. {dollars}, euros, offshore yuan and the Hong Kong greenback, with tenors of as much as two years, Bloomberg’s sources added.

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With the most recent transfer, Hong Kong is outwardly on the lookout for a brand new technique to place itself as a frontrunner within the digital asset area. In early December 2023, crypto.information reported that over 11% of the worldwide enterprise capital funding in blockchain and crypto was funneled in direction of ventures based mostly in Hong Kong and Singapore all through 2023.

In response to analysts at PitchBook, the change of capital movement could also be attributed to the collapse of Sam Bankman-Fried’s FTX crypto change and the following chapter domino impact it had on U.S.-based crypto firms.

In mid-November 2023, the New York-based crypto funding agency CoinFund introduced the growth of its companies in Asia as regulatory challenges for the business within the U.S. persist. CoinFund was not the one crypto-focused VC agency, which expanded its attain in Hong Kong. Hivemind Capital Companions, the opposite U.S.-headquartered funding crypto agency, additionally landed within the area earlier in November 2023.

Learn extra: Hong Kong to permit retail buyers to take part in spot ETFs