Authored by: Richard Mazzochi , Andrew Fei , Michael Lu , Song Yue and Jill Zhang
In a significant move to foster the digital securities market and encourage the adoption of tokenisation technology in capital market transactions, the Hong Kong* Monetary Authority (“HKMA”) published details of the Digital Bond Grant Scheme (the “DBGS”) on 28 November 2024.
The DBGS was initially introduced in the Hong Kong Chief Executive’s 2024 Policy Address (“Policy Address Announcement”) on 16 October 2024 to encourage financial institutions and issuers to participate in tokenised capital markets transactions, providing subsidies to cover eligible expenses for digital bond issuances in primary markets.