Hong Kong has reportedly hired a group of banks to help set up a digital hub for issuing green bonds using blockchain technology.
According to a Bloomberg report, the city is in talks with HSBC, Credit Agricole, Bank of China, Industrial and Commercial Bank of China and UBS to set up a group to explore the possibility of a digital issuance of green bonds with multiple series and fixed interest.
Hong Kong is considering issuing digital bonds on a distributed ledger developed by HSBC, according to sources close to the matter. The digital bonds are expected to be denominated in US dollars, euros, offshore yuan and the Hong Kong dollar, with a maturity of up to two years, Bloomberg sources said.
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With the latest move, Hong Kong is apparently looking for a new way to position itself as a leader in digital assets. In early December 2023, crypto.news reported that more than 11% of global venture capital funding in blockchain and crypto in 2023 would be channeled to companies in Hong Kong and Singapore.
According to PitchBook analysts, the change in capital flow can be attributed to the collapse of Sam Bankman-Fried’s FTX crypto exchange and the subsequent bankruptcy domino effect it had on US-based crypto companies.
In mid-November 2023, New York-based crypto investment firm CoinFund announced the expansion of its services in Asia as regulatory challenges for the sector continue in the US. CoinFund wasn’t the only crypto-focused venture capital firm expanding its reach in Hong Kong. Hivemind Capital Partners, the other US-headquartered investment crypto firm, also landed in the region earlier in November 2023.
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