The Hong Kong Monetary Authority officially launched the 'Digital Bond Grant Scheme (DBGS)' on November 28, aimed at promoting the development of the digital securities market and encouraging the broader use of tokenization technology in the capital markets. What are the funding amounts and application requirements? (Background: Hong Kong announces the reissuance of digital green bonds: collaboration with HSBC, UBS, Bank of China... exploring blockchain potential) (Background supplement: What are the regulatory conditions for issuing digital Hong Kong dollars under the 'Stablecoin Sandbox' introduced by the Hong Kong Monetary Authority?) The Hong Kong Monetary Authority announced on November 28 that it has officially launched the 'Digital Bond Grant Scheme (DBGS)' to promote the development of the digital securities market and encourage the broader use of tokenization technology in the capital markets. According to the press release from the Monetary Authority, the DBGS opened for applications on November 28, with an initial plan lasting three years. If the relevant eligibility requirements of the DBGS are met, each digital bond issued in Hong Kong will receive a grant of up to HKD 2.5 million. Detailed information on the Hong Kong Digital Bond Grant Scheme: 1. Grant Amount The Monetary Authority explains that the funding amount for the Digital Bond Grant Scheme can be divided into: If the basic requirements are met, a grant of HKD 1.25 million can be obtained (partial funding). If all basic and additional requirements are met, a grant of HKD 2.5 million can be obtained (full funding). Each issuer, including its related parties, can receive funding under the DBGS up to two times. 2. Basic Requirements To qualify for DBGS funding, the issued digital bonds must meet: Issued in Hong Kong, with at least half or more of the lead underwriters being recognized; Additionally, one of the following conditions must be met: The issuance team must have a physical presence in Hong Kong; or the digital bond issuance operates on a decentralized ledger technology (DLT) platform within the Central Money Market Unit (CMU). 3. Additional Requirements To qualify for full funding, in addition to meeting the basic requirements, the following additional requirements must be satisfied: The digital bonds must be issued on a DLT platform provided by a non-issuer related party; The issuance scale must be at least HKD 1 billion (can be calculated in multiple batches); At the time of issuance, the bonds must be issued to investors that are related parties of five or more non-issuers or digital bond issuance platform providers; Must be listed on one of the following: The Hong Kong Stock Exchange (SEHK), the Securities and Futures Commission (SFC), or a licensed Virtual Asset Trading Platform (VATPs). 4. Eligible Expenses Can Be Compensated Additionally, the Monetary Authority stated that the following expenses incurred by the issuer during the eligible issuance process may be compensated if they meet the funding requirements: Expenses paid to DLT platform providers, excluding costs paid to related parties of the issuer; Expenses paid to local underwriters in Hong Kong, excluding costs paid to underwriters related to the issuer; Expenses paid to local legal advisors in Hong Kong; Expenses paid to local auditors, accountants, and rating agencies in Hong Kong; Listing fees paid to the Hong Kong Stock Exchange (SEHK), the Securities and Futures Commission (SFC), and licensed Virtual Asset Trading Platforms (VATPs); Accommodation and settlement fees paid to the Central Money Market Unit (CMU). Lastly, if the issued digital bonds are also green bonds, social bonds, sustainable development bonds, sustainable development-linked bonds, or transition bonds, and meet the relevant eligibility requirements of the grant scheme, they can also enjoy: Eligible ordinary bond issuance costs can be compensated through DBGS or GSF grant scheme's Track I project, up to HKD 2.5 million, but cannot apply simultaneously; External sustainability review costs can be compensated through GSF grant scheme's Track II project, up to HKD 800,000, applicable to all external review costs before and after issuance. Related Reports Hong Kong Monetary Authority 'Stablecoin Issuer' sandbox list released: Animoca collaborates with Standard Chartered Bank, JD Coin Chain Technology, and Circle Innovation leads the way. Hong Kong Monetary Authority: Will reissue tokenized green bonds, cross-border CBDC project mBridge launches next year. USDC issuer Circle plans to enter Hong Kong: waiting for stablecoin regulations to be released, backed by a large mainland market 'Maximum grant of HKD 2.5 million! What are the application conditions for the Hong Kong Monetary Authority's 'Digital Bond Grant Scheme DBGS'?' This article was first published on BlockTempo (the most influential blockchain news media).