Bloomberg recently reported that the Hong Kong government’s special brand HKSAR is about to issue the third batch of digital bonds (since 2023). Hong Kong is undoubtedly one of the growing nations in the cryptosphere and preparations for this issuance have already begun. Officials and branches have allotted the financial hub. This announcement is classified as one of the most high-profile updates. Let’s look further into this news that has the potential of blockchain-based capital markets. Rising Demand Backed by Recent Corporate Moves Shenzhen Futian Investment Holdings and Shandong Hi-Speed Group have made the blockchain bonds right before this huge announcement. Both these companies are state-owned. Their activists can be considered an example of how traditional corporate giants are seeking to use blockchain for fundraising. Meanwhile, Shandong Hi-Speed, an infrastructure giant that has worked on projects such as the 40 km Jiaozhou Bay Bridge. It has used blockchain to expand its sources of financing for massive projects. Such high-profile questions suggest that institutional interest in digital bonds is not only increasing, but also getting promoted by state-sponsored institutions. Why Digital Bonds Are Gaining Traction? As per the many reasons rooting for Digital Bonds’ success, lets look at some of the major ones.Digital bonds are blockchain-based or Distributed Ledger Technology (DLT)-based. It is also good because it is open to more investors as it has 24-hour trading. Infact fractional ownership.Therefore, it is now estimated that the digital bond market amounts to approximately 1.6 billion around the world. It will continue to grow as more governments and institutions look at the tokenization concept. Plus, there are government institutions providing investors with assurance. This assurance mainly streams the introduction of digital bonds backed by compliance laws. The appearance of the new phenomenon of online relationships is a sign of a more serious change in world finance. The Bigger Picture It is a Hong Kong phenomenon, an opportunity, an experiment: to become a leader in financial innovations and regulatory protection. A second concern would show Hong Kong again that it is a transitional zone between the old and the new world of tokenized assets. Hong Kong can also serve as a bridge between the old finance and the future of tokenized assets in case the latter is successful.