Central Banks of Brazil and Thailand team up with Hong Kong to tokenize financial instruments, offering digital bond grants.
Hong Kong Monetary Authority Expands Collaborations for Cross-Border Digital Asset Transactions
The Hong Kong Monetary Authority (HKMA) has announced that it is collaborating with the central banks of Brazil, Thailand, and South Africa to facilitate cross-border tokenization transactions. This expansion of efforts is part of the HKMA's ongoing mission to promote the development of digital asset transactions.
Hong Kong has already made strides in the digital asset space, having issued two tokenized government green bond issuances in the past. One of these issuances was natively digital, marking a significant step forward. Notably, while the first issuance was the largest digital bond at the time, it has since been eclipsed by two KfW issuances. The second tokenized green bond issuance was worth more than US$750 million across multiple currencies.
The HKMA is offering grants for digital bond issuances through its new Digital Bond Grant Scheme. Each eligible issuance can receive a maximum grant of HK$2.5 million. The scheme is intended to encourage the development of the digital bond market in Hong Kong.
Details about the terms of the collaboration with the central bank of South Africa have not been announced. However, it is known that the collaboration involves atomic settlement of digital asset transactions and wholesale CBDC (payment versus payment) transactions.
In addition to these collaborations, the HKMA has been working closely with digital asset infrastructure providers and regional financial institutions. It is yet to be confirmed with which specific central banks the HKMA has agreed to cooperate for cross-border tokenization transactions and atomic settlement of digital asset transactions.
Hong Kong plans to publish guidelines for the Digital Bond Grant Scheme in the near future. This move is part of the city's broader strategy to establish itself as a global hub for digital asset transactions.
The HKMA has not previously announced any collaborations with the central bank of South Africa. However, it has announced collaborations with the central banks of Brazil and Thailand for cross-border tokenization transactions.
As the digital asset landscape continues to evolve, it is expected that more countries and central banks will join efforts to facilitate cross-border transactions and foster the growth of digital asset markets.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Tobacco industry's suggested changes on a legislative modification are disregarded by health journalists
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
