Asia Dispatch

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In its latest effort to stoke Hong Kong as a crypto hub, the city’s top financial regulator plans to tokenise more government bonds from 2024 to 2026.

The city’s Securities and Futures Commission made the announcement as part of its three-year strategic plan released on Tuesday.

Hong Kong has been at the forefront of governments tokenising securities. Last year, the city issued tokenised green bonds, which are designed to finance projects that minimise greenhouse gas emissions.

The plan also includes measures to foster a responsible and secure fintech ecosystem with blockchain and web3 technologies.

Hong Kong all in on web3

The city has embraced web3 technology as a way to restore its reputation as a financial hub. Hong Kong has taken a hit in recent years internationally due to political pressure from China and, until earlier this year, strict Covid-19 requirements.

Hong Kong’s stock market, home to some of China’s corporate titans, has lost $6 trillion in value since its peak in 2021, according to Bloomberg data.

The city is also contending with the rise of India and its booming economy as a “money centre”, leaving Hong Kong in the dust and possibly in a bit of an existential crisis.

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