HKMA Launches Digital Bond Grant Scheme to Boost Adoption
The Hong Kong Monetary Authority (HKMA) has initiated a grant scheme to boost the adoption of digital bonds. The program, running for three years, subsidises up to half the costs of issuing these bonds, with a maximum of two issuances per applicant.
Digital bonds, as defined by the HKMA, are conventional bonds represented on a blockchain using distributed ledger technology (DLT). The grant scheme aims to encourage more institutions to explore this innovative method of bond issuance.
While searches did not yield specific details about a 'digitales Bond-Grant-Programm' by the HKMA, they did uncover a related cross-border bond repo program. This program, involving global banks like HSBC and Standard Chartered, seeks to expand institutional investors' access to China's yuan markets through Hong Kong.
The HKMA's digital bond grant program offers substantial support to issuers, covering up to 50% of their expenses. With a maximum of two issuances per applicant over three years, the scheme encourages exploration of DLT in bond issuance, potentially driving growth in this area.
