While the crypto industry is currently undergoing regulatory scrutiny from U.S. authorities, some regions, such as Hong Kong, have shown continued interest in the underlying potential of blockchain technology.
Related Reading: Hong Kong to Limit Retail Investors’ Crypto Trading to Only ‘Highly Liquid’ Assets
Earlier today, the Hong Kong Special Administrative Region (HKSAR) Government of the People’s Republic of China announced the successful sale of the world’s first-ever tokenized green bond.
Hong Kong Becomes World’s First Tokenized Green Bond Issuer
Hong Kong has been demonstrating interest in the potential of blockchain. According to the latest report, the Hong Kong government was able to sell approximately 800 million HK dollars worth roughly $102 million of tokenized green bonds with a yield of 4.05%.
Hong Kong’s Financial Secretary Paul Chan commended the country’s digital economy’s latest achievements, saying:
The successful issuance of this tokenized green bond marks an important milestone as it demonstrates Hong Kong’s strengths in combining bond market, green and sustainable finance as well as fintech.
Goldman Sachs GS DAP, a blockchain tokenization platform, was responsible for the execution of the tokenized green bond sale as it was leveraged to represent the banking giant’s efforts to contribute to the digitalization of capital markets and increase efficiency across debt issuances.
Hong Kong Stance In The Crypto Industry
The cryptocurrency market has grown over the past years. Around the world, authorities and the private sector found ways of dealing with the nascent industry. The U.S., for instance, seems keener on enforcing regulation on crypto rather than adopting it.
On the other hand, the region of Hong Kong has remained in the adoption lane despite the hostile stance from China’s central government. During the bear market turmoil from last year, Hong Kong held its ground as the region aims to become a crypto hub.
Before that, the region disclosed its plan to allow retail investors to trade with digital assets. Unlike China, Hong Kong intends to change its approach to regulating the nascent sector instead of enforcing a “blanket ban.”
Elizabeth Wong, who heads the fintech unit at Hong Kong’s Securities and Futures Commission (SFC), confirmed the country would introduce its bill to regulate digital assets in a “much more independent and liberal manner.”
In December, Hong Kong prepared new legislation targeting crypto exchange service providers. Notably, the bill requires crypto exchange service providers to follow the same rules as traditional financing organizations.
While the region has continued to thrive to become a crypto hub, some parts have already been adopting crypto. Last July, the Hong Kong University of Science and Technology announced to build of the world’s first physical digital twin school buildings in the Metaverse.
Months later, the central bank of Hong Kong assessed the potential for digital assets to influence legacy financial markets. Meanwhile, the crypto market has been trending to the upside for the past 24 hours. Bitcoin broke the $25,000 mark for the first time in recent months, up by 9% in the last 24 hours.
Altcoins such as Ethereum also followed suit amassing new highs. ETH is currently up 8.4% in the last 24 hours after crossing the $1,700 mark and aiming at the $1,800 region.
Featured image from Unsplash, Chart from TradingView.