Today the Hong Kong Monetary Authority (HKMA) confirmed its first HK$800m ($102m) tokenized green bond issuance. The one year bond was priced at 4.05% and distributed by a syndicate of four banks, Bank of China (HK), Credit Agricole CIB, HSBC and Goldman Sachs.
As we reported earlier this week, the bond used the Goldman Sachs Digital Asset Platform (GS DAP), which runs on a permissioned blockchain. Goldman previously participated in HKMA green bond trials. A tokenized issuance from the European Investment Bank also used GS DAP.
The HKMA’s Central Moneymarkets Unit (CMU) dealt with the clearing and settlement, with a tokenized HKD used for settlement on a T+1 basis. The tokenized cash is a claim against the HKMA. All future settlement and lifecycle events will use the blockchain, which acts as the record of legal ownership.
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