Hong Kong to Launch Third Tokenised Bond With Zero Stamp Duty on ETFs

Hong Kong is accelerating its Web3 ambitions with a third tokenised government bond issuance, building on previous successes in digital asset innovation. The latest offering introduces a stamp duty exemption for tokenised ETFs while expanding tokenisation to include real-world assets like precious metals and solar panels.

The city-state's digital bond journey began with 2021's Project Genesis, a proof-of-concept developed with the Bank for International Settlements. February 2023 saw Hong Kong's first HK$800 million tokenised green bond, followed by a multi-currency digital bond worth HK$6 billion in early 2024.

Market observers note the strategic timing of these moves as Hong Kong positions itself as Asia's digital asset hub. The stamp duty exemption creates immediate cost advantages for institutional investors, while expanded asset classes open new avenues for fractional ownership models.