Hong Kong Issues World’s First Tokenized Eco-Friendly Bonds

Hong Kong Monetary Authority (HKMA) has made history by issuing HK$800M ($101.9M) worth of tokenized green bonds, making it the first-ever “green debt” issued by a government. The move is in line with Hong Kong authorities’ efforts to attract institutional investors by introducing eco-friendly bonds to finance environmental projects.

To facilitate the issuance of these bonds, Goldman Sachs’ GS DAP platform has developed bond tokenization, and Hong Kong’s Central Clearing System for Debt Instruments (CMU) will settle the bonds.

Hong Kong’s financial secretary, Paul Chan, recently announced that local regulators are keen on collaborating with crypto and fintech startups, despite the ongoing industry crisis. According to Chan, Hong Kong is quickly becoming a hub for large crypto companies and small projects.

Recent reports from the Bitcoin Mining Council reveal that the share of renewable energy used in mining bitcoin has reached nearly 60% in 2022, indicating a growing trend towards eco-friendly solutions in the crypto industry.