Hong Kong is taking another step in its push to become a hub for tokenized finance, bringing together global banks, crypto firms and market infrastructure providers to help mould the future of its tokenized bond market.
Hong Kong Expands Tokenization Push with New Industry Group
6 June 2026 - 00:10 CEST
By Jona Jaupi
Tokenized bonds are digital versions of traditional bonds that are issued, recorded and transferred using blockchain technology.
The Hong Kong Monetary Authority (HKMA) said on 5 Jun that it has created a Tokenized Bond Expert Group to discuss legal, regulatory and operational issues related to digital bonds issued on blockchain networks.
Members include JPMorgan, HSBC, Standard Chartered, UBS, HashKey Group and Ant Digital Technologies, along with Chinese banks, industry groups, law firms and financial infrastructure providers.
The move to bring together some of the world's largest financial institutions alongside crypto and blockchain firms underscores Hong Kong's ambition to become a leading hub for tokenized finance.
Hong Kong's path
Hong Kong's government has been a leader in experimenting with tokenized bonds, having issued a tokenized green bond in 2023, a multi-currency digital bond in 2024 and another digital bond in 2025 that incorporated the e-HKD, a pilot digital Hong Kong dollar, and the e-CNY, China's digital yuan, into the settlement process.
Moreover, its tokenization market has expanded rapidly – the Hong Kong Securities and Futures Commission (SFC) said in April that 13 tokenized investment products were available to the public in the city as of March 2026.
Assets under management (AUM) tied to those products have increased around sevenfold over the previous year to 10.7bn Hong Kong dollars ($1.4bn), the agency said.
A growing sector
The move also comes as tokenization of assets continues to grow. According to RWA.xyz, the value of tokenized assets on public blockchains reached about $31.2bn as of 5 Jun.
Tokenized US Treasuries accounted for $14.7bn of that total and have grown from less than $1bn in early 2024 to become the largest category in the sector. RWA.xyz tracks 82 tokenized Treasury products held by more than 62,000 investors.
Industry experts say tokenization has many benefits, including reducing operational work, speeding up settlement times and making it easier to track ownership compared with traditional systems.
Still, some experts caution that tokenization introduces new risks alongside its potential benefits. They point to unresolved regulatory questions, as well as cybersecurity threats, smart contract vulnerabilities and the operational risks associated with blockchain infrastructure.
