Hong Kong Mortgage Corporation (HKMC), a government-owned financial services provider with around HK$221.8 billion in assets, is reportedly considering issuing up to HK$12 billion about US$1.5 billion in digital bonds using blockchain for issuance, trading, and settlement.
This could become the world’s largest such offering to date if it proceeds. According to people familiar with the matter as reported by Bloomberg, HKMC plans to market multi-currency digital bonds denominated in Hong Kong dollars and offshore renminbi (CNH) as early as next month. The bonds would leverage blockchain to enable faster settlement times, lower costs, and greater scalability compared to traditional bond processes.
HKMC is Hong Kong’s key player in the mortgage and housing finance sector, often issuing bonds to fund its operations and support the local property market. This would mark its first digital bond issuance. Hong Kong has been actively positioning itself as a digital asset hub in Asia, with prior government-backed tokenized green bonds and efforts to build supporting infrastructure such as a centralized digital asset platform.
Key potential benefits of blockchain-based digital or tokenized bonds include: Near-instant or T+0 settlement vs. traditional T+2 or longer. Reduced intermediaries and operational costs. Improved transparency and auditability via the immutable ledger. Easier fractionalization and programmability for future features. This fits into the broader Real World Assets (RWA) tokenization trend, where traditional financial instruments like bonds, real estate, or credit are brought on-chain.
While earlier digital bond pilots globally have been smaller often in the tens or hundreds of millions, a $1.5B issuance at this scale would signal maturing institutional and sovereign-level adoption, especially in Asia. The plan is still in the consideration and exploration phase — not yet confirmed as a firm issuance.
Register for Tekedia Mini-MBA edition 20 (June 8 – Sept 5, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab.
Details on exact structure, yield, tenor, or blockchain platform; public and permissioned, specific vendors remain undisclosed. Marketing could begin soon, with execution depending on investor demand, regulatory approvals via HKMA or SFC, and market conditions. Hong Kong’s supportive regulatory environment for digital assets has encouraged such moves, contrasting with more cautious approaches in some other jurisdictions.
Similar efforts have included HSBC’s earlier private-sector digital bond in Hong Kong and government tokenized issuances. This development highlights growing mainstream integration of blockchain in fixed-income markets, potentially paving the way for more efficient capital raising and secondary trading. If executed, it could set a benchmark for large-scale tokenized debt in the region and beyond.
Hong Kong has been a global pioneer in tokenized green bonds, using blockchain to issue, settle, and manage green and sustainable bonds. These digital or tokenized bonds represent traditional debt instruments on a blockchain, enabling benefits like faster settlement, reduced costs, greater transparency, and programmability.
The Hong Kong Monetary Authority (HKMA) has driven this through initiatives like Project Genesis; a 2021 proof-of-concept with the BIS Innovation Hub and subsequent real-money issuances. The bonds fall under the HKSAR Government’s Sustainable Bond Programme, with proceeds funding eligible green and sustainable projects.
Hong Kong’s government has completed three tokenized green bond offerings: February 2023 issued World’s first tokenized government green bond. HK$800 million approx. US$100 million, 1-year, HKD-denominated. Priced at 4.05%. It demonstrated on-chain processes for the full bond lifecycle, shortening primary settlement from T+5 to T+1. Used a permissioned DLT platform including Goldman Sachs’ GS DAP for settlement.
February 2024: First multi-currency digital bond offering globally. Around US$750 million equivalent approx. HK$6 billion across HKD, RMB, USD, and EUR. Digitally native format; issued directly on-chain without traditional CSD conversion. Broad investor participation and scalability shown.
November 2025: Largest-ever digital bond issuance globally at the time — approx. HK$10 billion (US$1.3 billion) across four currencies (HKD, RMB, USD, EUR). Overwhelming demand with subscriptions exceeding HK$130 billion. Included tranches such as: HKD 2.5 billion 2-year at 2.5%. RMB 2.5 billion 5-year at 1.9%, USD 300 million 3-year at 3.633% and EUR 300 million 4-year at 2.512%.
This was the first government issuance allowing settlement with tokenized central bank money; e-HKD and e-CNY alongside traditional methods, further reducing risks and times. It followed the government’s Policy Statement 2.0 on digital assets and regularizes tokenized bond issuance. These issuances have been listed on the Stock Exchange of Hong Kong and supported by syndicates including banks like HSBC, Bank of China, Crédit Agricole, and Goldman Sachs.
Atomic settlement, reduced intermediaries, lower operational costs, and faster post-issuance processes like coupons, redemptions, secondary trading. Immutable ledger for better auditability; some use of ICMA’s Bond Data Taxonomy for standardization. Potential for fractional ownership and broader participation; multi-currency and multi-jurisdictional features.
Hong Kong’s legal and regulatory framework has proven compatible, with bonds governed by Hong Kong law. The HKMA has also launched a Digital Bond Grant Scheme up to HK$2.5 million per eligible issuance and maintains resources like EvergreenHub for knowledge sharing. A dedicated digital asset platform for tokenized bonds is planned for 2026.
This builds on Hong Kong’s push to become a digital asset and green finance hub in Asia. It aligns with the ongoing HKMC consideration of a potential record HK$12 billion (US$1.5 billion) multi-currency blockchain-based bond, which could surpass prior records if executed. HKMC itself has a Social, Green and Sustainability Financing Framework for potential future sustainable issuances.