Hong Kong Advances Digital Asset Leadership with Third Tokenised Bond and ETF Tax Exemption

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

The city's tokenisation journey began with 2021's Project Genesis, a green bond pilot with the Bank for International Settlements. Subsequent issuances in February 2023 (HK$800 million) and February 2024 (HK$6 billion multi-currency) established Hong Kong as a global model for sovereign digital assets.

This latest development creates structural advantages through tax efficiency and asset diversification. Fractional ownership of traditionally illiquid assets becomes possible, with 24/7 market access - potentially reshaping institutional investment strategies in Asia's financial hub.