HKMA forms 21‑member group to expand tokenised bond market

Hong Kong’s central banking authority has established a new expert group to advance the adoption of tokenized bonds, aiming to move beyond pilot projects and establish a scalable market for digital debt securities. The Hong Kong Monetary Authority (HKMA) announced the formation of the Tokenised Bond Expert Group on Friday, bringing together 21 institutions including major banks, law firms, technology providers, and market infrastructure operators.

The group includes financial institutions such as JPMorgan Securities, HSBC, Standard Chartered Bank, UBS, and Bank of China Hong Kong, alongside technology firms Ant Digital and HashKey Group, and legal advisors including Clifford Chance and Linklaters. According to the HKMA, the collective will examine policy measures, market practices, and technological innovations to support the growth of tokenized bond issuance and trading.

This initiative builds on several years of digital bond projects in Hong Kong. In 2021, the HKMA partnered with the Bank for International Settlements on bond tokenization research. The Hong Kong government issued its first tokenized green bonds worth HK$800 million in February 2023, followed by a larger HK$6...