Hong Kong is moving on two tracks at once: tokenized bonds and stablecoin oversight. The initial infrastructure for a new digital asset platform will be built by CMU OmniClear Holdings, a subsidiary of the Hong Kong Monetary Authority, with the first phase limited to settlement and payment for tokenized bonds. Broader digital asset coverage is planned for a later stage.
A platform built around tokenized bond settlement
Financial Secretary Paul Chan said the platform is expected to connect with regional tokenization systems over time, a step tied to Hong Kong’s push to strengthen its role as an Asian digital asset hub. The near-term scope is narrow by design. Authorities are starting with the post-trade side of tokenized bonds rather than trying to cover every digital asset use case from the outset.
That approach lines up with Hong Kong’s recent record in digitized public debt issuance. According to the source material, the city completed its third round of tokenized government bond issuance in the fourth quarter of 2025, raising HK$10 billion. Officials have said tokenized government bond sales will become a regular practice, and the market is being treated as a core part of Hong Kong’s digital finance shift.
Stablecoin licensing moves closer
At the same time, the city is accelerating work on stablecoin regulation. Paul Chan said Hong Kong is preparing to issue its first batch of licenses for fiat-backed stablecoins as early as March, with the number of initial approvals capped. HKMA CEO Eddie Yue said applications will be judged on practical use cases, risk controls, anti-money laundering mechanisms, and asset reserves.
His message was clear: applicants need to show concrete utility, not just a proposal on paper. The review will focus on whether risk management is robust and whether reserve backing can support the product structure being presented to regulators.
Exchange, custody, and tax rules are also being updated
Hong Kong is also preparing a separate licensing regime for digital asset exchanges and custodians. On the tax side, authorities plan to amend the tax code to adopt the Crypto-Asset Reporting Framework developed by the OECD. That would bring local reporting arrangements closer to international standards.
Recent rule clarifications from the Securities and Futures Commission have already covered collateralized transactions and crypto derivative products in the digital asset sector. Taken together, the policy direction is specific: widen access to digital asset activity while keeping a tight supervisory structure in place across issuance, settlement, custody, and reporting.