Hong Kong Targets $2.6B Multi-Currency Digital Bond Sale

Hong Kong is preparing to raise as much as HK$20 billion ($2.6 billion) through a multi-currency digital green bond, potentially making it the world’s largest digital bond issuance.

The proposed offering is expected to range between HK$15 billion and HK$20 billion, with bonds denominated in US dollars, Hong Kong dollars, euros and offshore yuan, Bloomberg reported on September 24, citing people familiar with the matter.

The Hong Kong government has mandated banks to arrange fixed-income investor meetings this week, with pricing potentially coming as early as Monday, according to the report.

The issuance has not yet been finalized, and the Hong Kong Monetary Authority (HKMA), which represents the government in the potential offering, declined to comment.

Hong Kong Expands Digital Bond Market

The proposed transaction would combine green finance with blockchain-based bond infrastructure.

Digital or tokenized bonds use distributed ledger technology to support parts of the issuance, trading or settlement process. By moving elements of the bond lifecycle onto blockchain infrastructure, issuers and investors can potentially streamline processes that traditionally involve multiple intermediaries and settlement steps.

Hong Kong has been expanding its use of the technology as it looks to modernize its debt markets.

The government issued around HK$10 billion of digital bonds in 2025, while the Hong Kong Mortgage Corp completed a HK$12 billion-equivalent digital bond in June, setting a record at the time.

If the latest offering reaches HK$20 billion, it would more than double the size of the government's previous digital-bond issuance and surpass the mortgage corporation's June transaction.

Hong Kong has said digital bonds issued in the city accounted for about half of global digital bond issuance between 2025 and the first half of 2026, underscoring the city's growing role in tokenized debt markets.

Multi-Currency Structure Adds Another Layer

The proposed issuance would extend Hong Kong's digital-bond activity across four currencies: the US dollar, Hong Kong dollar, euro and offshore yuan.

A multi-currency structure could broaden the investor base for the offering while testing how tokenized bond infrastructure operates across different currency markets.

The transaction would also connect Hong Kong's digital-asset infrastructure with its established green-finance market, allowing the city to combine its push into tokenized securities with a broader effort to expand sustainable debt issuance.

Chief Executive John Lee has previously supported making digital bond issuance more routine and exploring blockchain-based settlement and other post-trade applications.

Asia Expands Tokenized Bond Issuance

Hong Kong's proposed offering comes as other Asian financial institutions continue to test blockchain-based debt markets.

Earlier this month, India's state-owned power financier REC Ltd. issued 5 billion rupees ($59 million) of tokenized corporate bonds maturing in May 2028 under the Securities and Exchange Board of India's regulatory sandbox framework. The transaction was described by REC as India's first pilot issuance of tokenized corporate bonds under the framework.

The developments point to a broader shift in digital bonds from individual pilots toward larger institutional transactions.

Hong Kong's proposed multi-currency offering would take that trend further by combining a potentially record-sized digital bond with green-finance objectives and multiple international currencies.

If completed at the upper end of the proposed range, the transaction would further reinforce Hong Kong's position as a testing ground for tokenized debt and blockchain-based financial-market infrastructure.