Bloomberg recently reported that Hong Kong government special brand HKSAR is about to issue a third batch of digital bonds (since 2023). Hong Kong is undoubtedly one of the growing countries of the crypto-sphere, and preparations for this publication have already begun. Staff and branches have assigned financial hubs. This announcement is categorized as one of the most famous updates. Let’s take a look at more news that has the potential for a blockchain-based capital market.
Increase in demand supported by recent corporate movements
Deep Shenzhen Futian Investment Holdings and Shandong Hi-Speed Group created blockchain bonds just before this big announcement. Both of these companies are state-owned. Their activists can be seen as an example of traditional corporate giants trying to use blockchain to raise funds. Meanwhile, Shandong Hi-Speed is an infrastructure giant that has worked on projects such as the 40km Jiaozhou Bay Bridge. We have used blockchain to expand the source of funding for large projects. Such high-profile questions suggest that not only is there an increasing institutional interest in digital bonds, but they are being promoted by state-sponsored institutions.
Why is digital bond gaining traction?
Let’s take a look at some of the main ones, following the many reasons why we support the success of digital bond. Digital bonds are either blockchain-based or distributed ledger technology (DLT) based. It’s also good because it has 24-hour trading, which is open to more investors. De facto fractional ownership. Therefore, it is estimated that the digital bond market will amount to around 1.6 billion worldwide. As more governments and institutions see the concept of tokenization, it continues to grow. Additionally, there are government agencies that provide guarantees to investors. This guarantee streams the introduction of digital bonds primarily backed by compliance laws. The emergence of new phenomena in online relationships is a sign of a more serious change in global finance.
The whole picture
It is a phenomenon, an opportunity, and an experiment in Hong Kong. To be a leader in financial innovation and regulatory protection. The second concern once again shows that Hong Kong is once again a transition zone between the old and new worlds of tokenized assets. Hong Kong can also serve as a bridge between the old finance and the future of tokenized assets in case the latter is successful.
