Hong Kong’s $2.54B Digital Bond Puts Tokenized Cash to Work

Hong Kong’s latest digital green bond offering has introduced a new settlement option for institutional investors: paying for blockchain-issued government securities using tokenized commercial bank deposits. The transaction, priced on September 28 and announced the following day , raised approximately HK$20 billion across four currencies, making it the world’s largest digital bond issuance, according to the Hong Kong Monetary Authority (HKMA). The addition of tokenized deposits is a notable operational development. Previous issuances had already demonstrated digital bond creation and settlement using tokenized central bank money.