Hong Kong sold a new set of “digitally native” green bonds denominated in four currencies, intensifying the city’s drive to become a global hub for digital assets.

The Hong Kong Special Administrative Region government priced the equivalent of $1.3 billion of the notes in US dollars, Hong Kong dollars, euros and offshore yuan, according to people familiar with the matter who asked not to be identified discussing a private matter. It is Hong Kong’s third such sale since 2023.

Digital bonds are debt instruments that utilize blockchain technology for their issuance, trading and settlement. The notes can be issued through distributed ledger technology platforms such as those provided by HSBC Holdings Plc or Goldman Sachs Group Inc, or on public blockchains like Ethereum, which may offer greater flexibility.

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The securities have been gaining momentum in Hong Kong as the SAR government takes steps to encourage tokenized bond issuance. The push has come as policymakers across Asia have been rushing to embrace digital assets, looking to keep pace with US President Donald Trump’s pro-crypto policies. 

In addition to the government’s bond sales, at least six digital notes have been issued by corporates in the city, raising a total of $1 billion, according to data compiled by Bloomberg.

The Hong Kong SAR government’s new notes will be recorded and cleared using a DLT platform provided by HSBC. Proceeds will go toward financing or refinancing projects that fall under the city’s green bond framework, the people said.

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S&P Global Ratings has given the digital notes an AA+ rating, said Rain Yin, a director at the firm. While the securities carry some novel risks, “those are mitigated by a plan that requires, ultimately, shifting the notes to the traditional systems in case of disruption,” she added.