Hong Kong is pioneering Web3 development by issuing Tokenized government bonds, along with tax exemptions for Tokenized ETFs.
The city is continually expanding its model of real digital assets with the goal of becoming the world's leading digital asset hub, thereby promoting fractional ownership and 24/7 liquidity for traditional assets.
MAIN CONTENT
Hong Kong has conducted three rounds of Tokenized bond issuance, along with tax exemption incentives for Tokenized ETFs.
A strategy to expand into real assets such as precious metals, non-ferrous metals, and solar batteries.
The main challenges include integrating blockchain with the traditional financial system and complying with strict regulations.
How did Hong Kong start its journey with Tokenized bonds?
Launched in 2021 with a collaborative project with the Bank for International Settlements (BIS), Hong Kong introduced its first Tokenized green bonds.
Notable examples include a green bond issuance worth 800 million HKD in February 2023 and a multi-currency bond issuance of up to 6 billion HKD in February 2024. These initial successes have laid a solid foundation for further development of new digital asset products.
“The Genesis project marks a strategic turning point in collaboration with the BIS to test digital assets, laying the groundwork for a modern Tokenized bond model.”
“Hong Kong is committed to sustainable development of the digital finance sector through revolutionary bond issuance.”
James Wong, Director of the Hong Kong Financial Exchange, 2023
What are the new points in the third Tokenized bond issuance?
This issuance offers tax exemption incentives for Tokenized ETFs and expands the digital asset sector with precious metals, non-ferrous metals, and solar batteries.
The tax exemption will reduce investment costs, boost liquidity, and facilitate access to assets for global investors anytime, anywhere.
What prominent benefits does this strategy bring?
Supporting fractional ownership allows many small investors to access high-value markets, creating continuous liquidity 24/7 and making previously hard-to-buy-and-sell assets more flexible.
Additionally, the tax exemption for Tokenized ETFs is an important financial incentive, while expanding tokenization of various assets will promote the democratization of the digital finance market.
What challenges is Hong Kong facing?
Integrating blockchain technology into the traditional financial system requires many adjustments and infrastructure upgrades. Blockchain platforms must demonstrate sustainability, scalability, and multi-chain compatibility. At the same time, regulatory constraints such as investor protection, KYC/AML, and risk governance are becoming increasingly stringent.
“The success of the Tokenized bond market greatly depends on synchronized coordination between technology and policy, ensuring safety and transparency for investors.”
Linda Chan, Blockchain Expert, University of Hong Kong, 2024
Conclusion on the vision for digital finance development in Hong Kong
With tax incentives and plans to diversify Tokenized asset offerings, Hong Kong is laying the groundwork for the next phase of digital finance development. However, for widespread success, the city needs to ensure compliance with international regulations and build a secure, scalable blockchain infrastructure to serve the global market.
Frequently Asked Questions
What are Hong Kong's Tokenized bonds?
These are government bonds digitized in the form of tokens on the blockchain, enabling faster, more transparent, and higher liquidity transactions compared to traditional forms.
What benefits does the tax exemption for Tokenized ETFs offer?
This incentive reduces transaction costs when trading Tokenized ETFs, encouraging investment flows into a diverse range of digital asset products.
What assets are being expanded for tokenization in the third issuance?
Including precious metals, non-ferrous metals, and solar batteries, helping to diversify investment portfolios in the digital market.
What is the biggest challenge for the current Tokenized bond model?
This involves integrating blockchain systems with traditional financial infrastructure while ensuring compliance with strict international regulations.
Can Hong Kong become the world's leading digital asset hub?
With a strategy of tax incentives and product expansion, Hong Kong has a significant advantage to lead, but it needs to maintain international cooperation and develop sustainable technology.
Source: https://tintucbitcoin.com/token-trai-phieu-thu-3-ra-mat-mien-phi/
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