Hong Kong's central bank will offer subsidies to companies that issue tokenized bonds

Hong Kong's central bank, the HKMA, has launched a scheme to subsidize part of the cost of issuing tokenized bonds, aiming to encourage greater adoption of tokenization in its capital markets.
According to the Nov. 28 announcement and accompanying guidance, HKMA's Digital Bond Funding Scheme (DBGS) will provide a subsidy of up to 50% of "qualifying expenses" for each eligible digital bond issue, subject to a maximum amount.
"DBGS aims to promote the development of digital securities markets and encourage wider adoption of tokenisation in capital markets trading," the HKMA said in a statement.