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Banks Assemble for Hong Kong Sale of Tokenized Green Notes

In a continued effort to establish itself as a sustainable finance and digital assets hub, the city's government has mandated banks to arrange a debut offering of tokenized green notes.

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Bank of China, Credit Agricole, Goldman Sachs, and HSBC will hold investor calls to raise HK$800 million (US$102 million) in Hong Kong's debut offering of tokenized green notes.

The banks will hold investor calls from February 13, Bloomberg reported on Monday, citing people familiar with the matter who asked not to be identified.

Hong Kong previously said it would issue world's first tokenized green bonds by end of 2023 as part of the city's efforts to develop a "vibrant ecosystem" for virtual assets. The bonds will simplify the process of issuance and investment, and can only be purchased by institutional investors.

Related: Hong Kong Set to Issue Tokenized Green Bonds for Institutions

The use of tokenized green notes is a significant step towards promoting sustainable financing and digital assets. This new form of fundraising will make use of distributed ledger technology to create digital tokens that represent the beneficial interests in the notes.

The platform will be provided by Goldman Sachs, ensuring a secure and efficient system for recording the tokenized notes.

Digital, Sustainable Trend

Hong Kong’s push into sustainable financing and digital assets is part of a larger trend in the finance industry. The growing demand for environmentally responsible investments has driven the creation of new products, such as green bonds and tokenized green notes.

In January, Hong Kong sold its largest-ever green deal, issuing the equivalent of US$5.8 billion of green bonds in three currencies, showcasing the city’s commitment to sustainability.

This latest development also highlights Hong Kong’s drive to stay at the forefront of financial innovation. By leveraging technology, the city is looking to improve the efficiency and accessibility of sustainable financing, making it easier for investors to support environmentally responsible projects.

The government of Hong Kong, participating banks and investors are set to benefit from this new form of fundraising. The tokenized green notes will provide investors with a new investment opportunity while supporting sustainable projects. At the same time, the participating banks will gain experience in the digital assets industry, positioning them as leaders in this growing sector.

Related: Asset Tokenisation Poised to Grow 50X by 2030

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