Hong Kong advances blueprint for tokenised bond market

Hong Kong is advancing its positioning as a regional hub for tokenised fixed-income markets, with industry participants and policy-adjacent bodies increasingly exploring digital bond infrastructure as part of broader capital market modernisation.

The Digital Asset Clearing Center (DACC.HK) is honoured to be the special co-organiser for the Hong Kong New Quality Productive Forces Forum (III), hosted by the Chinese Academy of Governance (Hong Kong) Industrial and Commercial Professionals Alumni Association (CAGA) and Hong Kong Economic Council (HKEC).

This is an important event, and the DACC is excited to share how Hong Kong's bond market can seize new opportunities in digital bond development through technological and institutional innovation. The White Paper being presented is "Building a Global Digital Bond Hub in Hong Kong" and will be discussed at the event. The paper details the advantages of digital bonds with a strategic goal: Introduce Hong Kong as a global digital bond-issuance centre for cross-currency settlements, including cross-border RMB settlement tools.

"Through developing the digital bond market, Hong Kong is expected to achieve a 30% to 50% reduction in issuance costs, trading and settlement time shortened from days to seconds, and 60% to 80% improvement in cross-border capital flow efficiency. This further consolidates Hong Kong's position as the super-connector between the Chinese Mainland and global capital markets," shared Serra Wei, co-founder of the DACC. "The digital bond market is still in its early stages and presents an opportunity for strong growth in Hong Kong and across Asia because digital bonds offer significant advantages over traditional bonds with higher issuance efficiency, lower transaction costs, greater transparency and better programmability."

As an international financial centre, Hong Kong holds a significant position in the global bond market. In 2025, Hong Kong dollar bond issuance was HKD 1.629 trillion ($209 billion), while offshore RMB bond issuance reached RMB 1.1 trillion ($153 billion). However, facing the wave of digital transformation in global financial markets, Hong Kong's bond market urgently needs to seize new opportunities in digital bond development through technological and institutional innovation to capture this additional global liquidity opportunity.

This White Paper aims to provide strategic recommendations for the Hong Kong SAR Government on digital bond development, clarify Hong Kong's target positioning in the international bond market, propose pathways for building a robust digital bond ecosystem, analyse current obstacles, and suggest required policy breakthroughs including to reserve a portion of government bonds for subscription by retail investors, expand the scale of tokenised bond issuance, and establish mechanisms for cross-border regulatory coordination.

Other core recommendations are to build a multi-blockchain interoperable digital bond gateway, and DACC ChainFusion™ is the core technology connecting traditional financial systems with blockchain networks, enabling seamless interoperability between on-chain assets and off-chain settlement tools. DACC ChainFusion™ is compliant with ISO 20022 standards, offering compliance-first and immutable audit trails for every transaction and regulatory-grade know-your-customer/anti-money laundering and reporting above and beyond financial institutions' traditional business with SOC 2 Type 1 and Type 2 certifications. Conflux, the only regulatory-compliant public blockchain in China, an important ecosystem partner, is fully integrated with DACC ChainFusion™ to provide end-to-end tokenisation solutions for the blockchain infrastructure.

Re-disseminated by Wealth and Society