The city accelerates its push to become the global leader in blockchain-based finance with new licensing and a digital asset platform
A Budget With Blockchain at Its Core
Hong Kong Financial Secretary Paul Chan Mo-po used his 2026-27 budget address to lay out an ambitious agenda for digital assets and financial tokenization that goes well beyond anything the city has previously committed to in a single fiscal statement. The announcements included plans for the Hong Kong Monetary Authority’s Central Moneymarkets Unit (CMU) to develop its own digital asset platform, regulatory clarity on the use of distributed ledgers for bond registry purposes, support for digital bearer bonds, and confirmation that Hong Kong’s first stablecoin licenses will be issued next month.
The CMU Digital Asset Platform
The CMU, which functions as Hong Kong’s central securities depository, will establish a platform called OmniClear this year to support the issuance and settlement of digital bonds. Chan said the platform would be gradually extended to other digital assets and linked with tokenization platforms across the region, positioning Hong Kong to consolidate what he called its leading role in the realm of digital assets. The announcement matters because much of Hong Kong’s digital bond issuance to date has relied on HSBC’s Orion tokenization platform, which is integrated with the CMU. By building its own infrastructure, the HKMA is signaling that it wants the digital asset ecosystem to have a public institutional backbone rather than depending entirely on private sector platforms.
Stablecoin Licenses Coming in March
The confirmation that stablecoin licenses will be issued next month marks a significant milestone for Hong Kong’s crypto regulatory framework. The city has been building its licensing regime for digital assets over the past two years, positioning itself as a regulated alternative to jurisdictions that have taken a more restrictive approach. The issuance of stablecoin licenses would make Hong Kong one of a small number of jurisdictions where fiat-backed digital currency issuers can operate under a clear legal framework. This is commercially significant for businesses that want regulatory certainty and reputationally significant for a city that is trying to attract fintech talent and capital.
Digital Bonds: Hong Kong’s Track Record
Hong Kong was the global leader in digital bond issuance during 2025, and Chan confirmed the government will continue to support digital bonds through its grant scheme and plans to issue digital government bonds on a more regular schedule. The grant scheme has provided financial incentives for companies to issue bonds using distributed ledger technology, attracting issuers from across the region and beyond. The combination of a legal framework, government support, and institutional infrastructure has made Hong Kong one of the most active venues in the world for bond tokenization. The Bank for International Settlements has studied tokenized bond markets extensively, noting that distributed ledger technology can reduce settlement times, lower transaction costs, and improve transparency in ways that benefit both issuers and investors. Hong Kong’s experience is becoming a reference point for regulators in other jurisdictions who are considering similar frameworks.
Debenture Registry on Blockchain
Chan also announced plans to clarify the legal status of using distributed ledgers for debenture holder registry purposes. This technical-sounding change matters practically because it removes uncertainty for companies that want to issue debt instruments where ownership records are maintained on a blockchain rather than in traditional centralized registries. Registry clarity is one of the unsexy but essential building blocks of a functional tokenized capital market. Without it, issuers and investors face legal uncertainty about the validity of their ownership records, which suppresses adoption.
Hong Kong’s Fintech Advantage — and Its Limits
Hong Kong’s push into digital assets and tokenization reflects genuine institutional capabilities and a regulatory approach that has sought to be permissive without being reckless. The HKMA’s track record in financial regulation is internationally respected, and the city’s legal system has historically provided reliable dispute resolution for complex financial transactions. The Securities and Futures Commission’s regulatory framework for virtual asset trading platforms has been cited as a model by other regulators in the region. But the broader political environment creates headwinds that no amount of regulatory sophistication can fully offset. International fintech companies choosing a base for Asia-Pacific operations must weigh Hong Kong’s financial infrastructure against questions about data security, the reach of mainland Chinese authorities, and the reliability of legal protections that have been tested since 2020. Singapore has attracted significant fintech investment from companies that made exactly that calculation. Hong Kong’s budget announcements are strong on technical substance. Restoring the trust that makes that technical substance fully realizable is a task that goes beyond what any financial secretary can accomplish alone.
Senior Journalist & Editor, Apple Daily UK
Contact: athena.lai@appledaily.uk
Athena Lai is a senior journalist and editor with extensive experience in Chinese-language investigative reporting and editorial leadership. Educated at a leading journalism school in the United Kingdom, Athena received formal training in fact-checking methodology, editorial governance, and international media standards, grounding her work in globally recognized best practices.
She has held senior editorial roles at Apple Daily and other liberal Chinese publications, where she oversaw coverage of Hong Kong civil liberties, diaspora politics, rule of law, and press freedom. Athena’s reporting is distinguished by disciplined sourcing, cross-verification, and a clear separation between factual reporting and opinion, reinforcing reader trust.
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