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Blockchain-based government-issued bond just rolled out in Hong Kong

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2 years ago

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  • Hong Kong issues the first blockchain-based tokenized bond in the world.
  • A look at how this development might impact the future of the finance industry.

Have you ever wondered what will happen once blockchain technologies go mainstream? How will they be applied and what benefits will they offer? Well, we might just be about to find out, thanks to Hong Kong’s latest bond offering.

The government of Hong Kong just made history after announcing the rollout of the Tokenized Green Bond worth roughly HK$800 million.

According to the official press release

, the launch was carried out as part of the Government Green Bond Programme (GGBP). This is the first bond of its kind and it was reportedly rolled out through a private blockchain network.

What does this mean for the blockchain industry?

Tron’s founder Justin Sun

was among the first industry figures to acknowledge the magnitude of the tokenized bond offering.

He noted that the bond is a great opportunity to demonstrate the financial potential of decentralized ledger technology. Sun stated that the bond offering is an example of the ongoing adoption of blockchain by institutions.

The tokenized green bond is of particular significance because it stands to demonstrate how blockchain can benefit the markets. One of the key benefits is a broader reach.

Access to bonds has traditionally been limited due to multiple factors such as regulatory barriers. However, this newly issued bond is available globally. As such, the bond paves the way for a more global inclusion as far as asset classes are concerned.

Well, as far as adoption is concerned, Hong Kong’s new bond may also encourage other jurisdictions across the world to embrace blockchain technology. This is because the benefits accrued by initial adopters will offer proof of the benefits.

Mr. Eddie Yue, the CEO of the Hong Kong Monetary Authority (HKMA) stated, “Distributed ledger technology (DLT) holds promise for revolutionizing the operation of the financial markets.”

The development comes at a time when the crypto market has been facing more regulatory pressure, the tokenized bond issuance was carried out with regulatory measures in place.

This means that more adoption of DLT will also push for proper regulatory frameworks that will likely benefit the entire blockchain and cryptocurrency industry.

In other words, the Hong Kong tokenized bond might push the market in the right direction as far as regulatory frameworks are concerned.

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