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- Hong Kong is building a permanent digital asset platform for bond settlement via CMU OmniClear.
- The first stablecoin issuer licenses are expected to be granted in March 2026 under strict oversight.
- New legislation will bring digital asset custodians and dealers under formal licensing regimes.
Hong Kong is moving beyond the “experimental” phase of digital finance. In his 2026-27 budget speech on Wednesday, Financial Secretary Paul Chan announced the launch of a dedicated digital asset platform designed to bring tokenized bonds into the city’s core financial infrastructure.
The project will be led by CMU OmniClear Holdings, a subsidiary of the Hong Kong Monetary Authority (HKMA). This new system aims to automate the issuance and settlement of tokenized bonds, eventually expanding to other digital assets. By linking with regional platforms, Hong Kong is positioning itself as the primary liquidity bridge for digital securities in Asia.
From Pilots to Mainstream Markets
The shift follows a series of successful government-led initiatives. In late 2025, Hong Kong issued its third batch of tokenized bonds, totaling 10 billion HKD (approximately $1.28 billion). This steady issuance signals that the government no longer views blockchain technology as a novelty, but as a permanent tool for debt markets.
Integration into the HKMA’s post-trade infrastructure is a decisive step. It suggests that tokenized assets will soon be handled with the same institutional rigor as traditional stocks and bonds, providing a regulated environment for global investors.
Stablecoins and New Regulatory Frameworks
Infrastructure is only half the battle; the other half is regulation. Secretary Chan confirmed that Hong Kong expects to issue its first batch of fiat-referenced stablecoin licenses in March. These initial approvals will be tightly controlled, focusing on asset backing and anti-money laundering (AML) protocols.
To further professionalize the sector, the government plans to introduce a new licensing regime for digital asset custodians and dealers. Additionally, the Inland Revenue Ordinance will be updated to align with the OECD’s Crypto-Asset Reporting Framework, ensuring tax transparency that meets international standards.
Market Volatility and Investor Risks
While Hong Kong builds for the future, the human cost of market volatility remains a stark reality in the region. In South Korea, where over 30% of the population now engages with crypto, the legal system is grappling with the fallout of the recent market downturn.
Also Read: $1 Billion Bet: Why Hong Kong’s RedotPay is Taking its Stablecoin Empire to Wall Street
A South Korean man was recently indicted for attempted murder after allegedly poisoning his business partner over a dispute involving $816,000 in crypto losses. The case highlights the high stakes of the industry, particularly after Bitcoin’s sharp decline from its 2025 peak of $125,000 to its current levels near $65,500.
As Hong Kong integrates digital assets into its sovereign infrastructure, the focus remains on balancing this rapid innovation with the robust risk controls necessary to protect the broader economy from such volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
