The Hong Kong government has announced the successful sale of the world’s first tokenized green bond worth approximately HK$800 million ($102 million).
The Hong Kong Monetary Authority (HKMA) has launched a government green bond program, leveraging the Goldman Sachs Tokenization Platform (GSDAP) to tokenize assets on a private blockchain.
Tokenized bonds are expected to lower the cost of issuing and settling bonds and bring transparency to the bond market.
the government said February 16th Completed the first tokenized green bond issuance in partnership with Bank of China, HSBC, Crédit Agricole and Goldman Sachs.
government disclosed HKMA CMU said it had raised approximately HK$800 million (US$102 million) from the sale of bonds settled through the HKMA CMU Central Money Market Unit (CMU). The green bond was issued at an annual interest rate of 4.05%.
Hong Kong Finance Minister Paul Chain said the successful issuance of tokenized green bonds demonstrates the government’s commitment to fostering innovation in financial markets.
Meanwhile, Hong Kong is on its way to becoming the destination of choice for cryptocurrency innovation. The government is reportedly working to legalize cryptocurrency trading from June 1st.
