Up to HKD 2.5 million in maximum subsidy! What are the application conditions for the Hong Kong Monetary Authority's 'Digital Bond Grant Scheme (DBGS)'?

The Hong Kong Monetary Authority officially launched the Digital Bond Grant Scheme (DBGS) on November 28, aiming to promote the development of the digital securities market and encourage the wider use of tokenization technology in the capital market. What is the funding amount and application requirements? (Synopsis: Hong Kong announces re-issuance of digital green bonds: cooperation with Huifeng, UBS, Bank of China.. Explore the potential of the Block chain) (Background supplement: Hong Kong Monetary Authority launches "stablecoin sandbox", what are the regulatory conditions for issuance digital Hong Kong dollar? The Hong Kong Monetary Authority announced on November 28 that the HKMA officially launched the Digital Bond Grant Scheme (DBGS) to promote the development of the digital securities market and encourage the wider use of tokenization technology in the capital market. According to a HKMA press release, DBGS opened applications on 28 November with an initial three-year plan. If the relevant eligibility requirements of DBGS are met, each digital bond of issuance in Hong Kong will receive a maximum of HK$2.5 million. Details of Hong Kong Digital Bond Funding Scheme 1. Amount of subsidy According to the HKMA, the amount of subsidy under the Digital Bond Subsidy Scheme can be divided into: HK$1.25 million (half subsidy) if the basic requirements are met. If you meet the basic requirements and all additional requirements, you can receive a subsidy of HK$2.5 million (fully funded). Each issuance person, including their affiliates, may receive up to two grants under the DBGS. 2. Basic Requirements In order to qualify for DBGS funding, all issuance's digital bonds must meet: At least half or more of the lead underwriters in Hong Kong issuance are accredited; At the same time, one of the following conditions must be met: the issuance team must have an entity in Hong Kong; Or digital bond issuance on a distributed ledger technology (DLT) platform operated by a central money market unit (CMU). 3. Additional Requirements In order to be fully funded, the following additional requirements must be met in addition to the basic requirements: The digital bond needs to be on the DLT platform provided by a non-issuance affiliate; issuance has a scale of at least HK$1 billion (can be combined in multiple batches); At issuance, issuance to investors who are five or more non-issuance persons or affiliates of the digital bond issuance platform provider; Must be listed on the Hong Kong Joint Exchange (SEHK), the Securities and Futures Commission (SFC) and licensed virtual asset trading platforms (VATPs). 4. Eligible expenses are reimbursable In addition, the HKMA also indicated that issuance persons may also be reimbursed for the following expenses incurred in the process of qualifying issuance if they meet the funding requirements: Expenses paid to DLT platform providers, excluding fees paid by issuance related parties; fees paid to local underwriters in Hong Kong, excluding underwriters of Issuance's affiliates; fees paid to local legal counsel in Hong Kong; fees paid to local auditors, accountants and rating agencies in Hong Kong; listing fees paid to the Hong Kong Joint 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). Finally, if issuance's digital bonds are both green, social, sustainability, sustainability-linked or transition bonds, and meet the eligibility requirements of the relevant funding scheme, they can also enjoy: Eligible ordinary bond issuance fees can be reimbursed through the DBGS or GSF funding scheme's Track I project, up to a maximum of HK$2.5 million, but cannot be applied for at the same time; External sustainability review fees, which can be reimbursed through the GSF-funded Track II project, are available up to HK$800,000 and apply to the sum of all pre-issuance and post-issuance external review fees. Related reports Hong Kong Monetary Authority's "stablecoin issuance" sandbox list released: Animoca joins hands with Standard Chartered Bank, JD coin chain technology, and round coin innovation to lead the way Hong Kong Monetary Authority: will issue tokenization green bonds again, cross-border CBDC project mBridge will be on the road next year USDCissuance merchant Circle plans to enter Hong Kong: is waiting for stablecoin regulations to be released, backed by the mainland market is very large (maximum subsidy of 2.5 million Hong Kong dollars!). What are the application requirements for the Hong Kong Monetary Authority's Digital Bond Subsidy Scheme DBGS? This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".