Tokenization: Hong Kong issues $100 million of “green” bonds on the blockchain

Tokenization: Hong Kong issues $100 million of “green” bonds on the blockchain

The day when everything became token – In the opinion of Larry Finkpatron of the giant BlackRockthere “tokenization” (digitalization on blockchain) of financial assets will constitute the next great financial revolution. The government of hong kong seems to have already understood and anticipated it. Indeed, it has just issued a significant amount oftokenized bonds through a blockchain network.


World first for a government: tokenized green bonds

Whether Bitcoin (BTC) and cryptocurrencies decentralized tend to be opposed by governments, and especially by bankers. Today, everyone is beginning to understand the incredible advances and opportunities brought by distributed ledger technology (DLT) crypto-assets.

In a communicated press release published on February 16, 2023, we learn that the authorities of hong kong succeeded in issuing a new “tokenized green bond” (Tokenised Green Bond). In all, this debt issue made it possible to collect HK$800 million. This amount will be used within the framework of the Hong Kong environmental program (approximately 102 million US dollars).

“The tokenization of green bonds is one of the pilot projects announced in the government’s policy statement on the development of digital assets in Hong Kong. Through a clear policy position and roadmap, the government will strive to provide an enabling environment to promote sustainable and responsible development of the digital asset industry. We encourage market participants to issue tokens in Hong Kong. »

Christopher Hui, Financial Services and Treasury Secretary of Hong Kong

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Hong Kong uses Goldman Sachs tokenization platform

These tokenized green bonds were subscribed by four banksat a rate of return of 4.05%. This issue was based on the tokenization protocol “GS DAP”. In particular, it was officially launched on January 10, 2023 by Goldman Sachs And Digital Assets.

The GS DAP tokenization platform is based on the smart contract language Daml. A technology deployed on the blockchain Canton of Digital Assets.

“This bond demonstrates the leadership and innovation of the HKMA (Honk Gonk Monetary Authority) in green finance, and also marks an important step in the digitalization of capital markets. We are excited to play a key role in this landmark issuance that uses Goldman Sachs’ tokenization platform, GS DAP, to help drive increased efficiency and digitalization across debt issuances. »

Max Minton, Asia Pacific Head of Digital Assets at Goldman Sachs

Although the government of the Special administrative region of Hong Kong has been subordinated to the People’s Republic of China since the return of the island in 1997, we see with this tokenization of bonds that its government remains much less hostile to the blockchain experiments. In mainland China, only the Central Bank Digital Yuan (e-CNY) seems to have real right of citizenship.

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