Clearstream's planned digital asset platform, designed to offer integrated services such as digital bond issuance and settlement, is on track to become operational before the end of this year. According to Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), the platform will bring to life the vision of 24/7 on-chain atomic settlement, delivering enhanced flexibility and efficiency. The authority also intends to explore accepting tokenised deposits and regulated stablecoins for settlement on the platform, a move that aims to solidify Hong Kong's standing as a global leader in digital finance. Atomic settlement on a 24/7 on-chain basis leverages blockchain technology to remove the constraints of traditional trading hours, enabling buyers and sellers worldwide to execute instant delivery-versus-payment through smart contracts at any moment — a process that achieves simultaneous exchange of funds and assets with zero settlement risk.
Speaking on September 23 at the Treasury Markets Summit, where he also serves as Honorary President of the Treasury Markets Association, Yue stated that this digital asset platform will support settlement using the e-HKD, Hong Kong's central bank digital currency. Furthermore, the HKMA will look into permitting tokenised deposits and regulated stablecoins on the platform for settlement purposes. He reiterated that the authority will conduct testing on the tokenisation of Exchange Fund Notes, a step expected to help banks manage their assets and liabilities more efficiently.
Yue noted that Hong Kong's leadership in the digital finance arena will pave the way for pioneering solutions in the issuance and investment of fixed-income assets. This, in turn, should translate into higher trading efficiency, greater transparency, and wider accessibility. Institutions that are quicker to adopt and integrate these technologies will reap the benefits. The HKMA's vision, he explained, is to cultivate a diversified marketplace with broad participation, a deep and liquid market, and a vibrant, digitally-native market supported by future-ready infrastructure.
Additionally, Yue highlighted that Hong Kong's bond market has achieved a compound annual growth rate of 20 percent over the past two decades. Last year, roughly a quarter of Asia's international bond issuance was conducted in Hong Kong, with dim sum bonds driving much of this robust growth. As Hong Kong dollar funding conditions have become more favourable, issuance of Hong Kong dollar-denominated "wonton" bonds has also risen sharply, with global institutional issuance in this segment growing 64 percent year-on-year in the first half of the year. The HKMA, Yue said, has been promoting Hong Kong globally to attract more issuers and investors.
To foster a diversified, deep, vibrant, and digitally-native bond market, the HKMA is nurturing a healthy ecosystem. The government is playing a demonstrative role through its own bond issuance, which includes issuing bonds in multiple currencies and expanding issuance size. At the same time, efforts are underway to extend the maturity profile of offshore renminbi and Hong Kong dollar government bonds, providing a long-term reference for the yield curve and encouraging private sector issuance.
Yue also reported that Hong Kong's average daily foreign exchange turnover in April was roughly 20 percent higher than in October of the previous year. Both renminbi real-time gross settlement and trade settlement activity have been robust, while renminbi loans have grown by nearly 30 percent. The Treasury Markets Association, he added, is exploring the introduction of a 7-day offshore renminbi liquidity tender mechanism. The HKMA also plans to issue short-term offshore renminbi debt instruments to offer more liquidity management tools and strengthen the offshore renminbi yield curve.
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