Hong Kong Offers Up to HK$500,000 for Blockchain Projects as New Tokenization Platform Launches
Hong Kong is stepping up its efforts to attract blockchain and digital asset businesses with two initiatives aimed at moving tokenization projects closer to real-world use.
Cyberport has opened applications for the second round of its Blockchain and Digital Asset Pilot Subsidy Scheme, offering eligible projects funding of up to 80% of their actual development costs, subject to a maximum grant of HK$500,000 per approved project.
At the same time, the Hong Kong Monetary Authority (HKMA) and Cyberport have introduced the tConnect Launchpad, a separate programme designed to help financial institutions, technology companies and asset owners test tokenized assets, payments and settlement systems.
Both initiatives were announced on November 2, 2026, during Hong Kong FinTech Week. Together, they reflect a broader policy direction: encouraging companies to develop blockchain applications that solve practical business problems rather than limiting the sector to cryptocurrency trading.
The funding programme is particularly relevant to companies working on real-world asset (RWA) tokenization, digital asset infrastructure and enterprise blockchain solutions. However, the eligibility requirements mean that international startups cannot simply apply from overseas without establishing the required business presence in Hong Kong.
Hong Kong Opens a New Blockchain Funding Programme
The Blockchain and Digital Asset Pilot Subsidy Scheme 2.0 is commissioned by Hong Kong's Financial Services and the Treasury Bureau (FSTB) and administered by Cyberport.
Its purpose is to encourage technology companies to work with established businesses on blockchain and digital asset projects that address identifiable commercial needs.
Under the programme, an approved project can receive funding covering up to 80% of its actual eligible project costs. The maximum subsidy is HK$500,000 per project.
This is a cost-sharing arrangement rather than an unconditional grant. The amount awarded depends on the approved project's actual expenses and the programme's funding limit.
For example, a project with eligible costs of HK$400,000 could potentially qualify for a subsidy of up to HK$320,000, assuming it meets the programme's requirements and receives approval. A more expensive project would still be subject to the HK$500,000 cap.
The programme is intended to support development and testing. It is not designed to provide unrestricted funding for general company operations, speculative token launches or projects without a practical application.
Cyberport has identified several areas where blockchain technology could be applied, including financial services, payments, insurance, securities, logistics and other business sectors.
RWA Tokenization Is Among the Main Areas of Focus
Real-world asset tokenization is an important part of Hong Kong's digital asset strategy.
RWA tokenization involves representing rights or interests in an asset through digital tokens recorded on a blockchain. Depending on the legal and technical structure, tokenized assets can include financial instruments, funds, commercial assets and other forms of real-world value.
The technology could help improve how assets are issued, transferred, recorded and settled. It may also allow financial institutions to automate certain processes through smart contracts.
However, tokenization does not automatically make an asset more liquid, legally transferable or less risky. Those outcomes depend on the underlying asset, legal ownership arrangements, custody structure, investor protections and the infrastructure supporting the token.
Cyberport's new subsidy programme is intended to help companies develop and test solutions in practical business settings.
That distinction matters. Instead of funding blockchain projects simply because they use distributed ledger technology, the programme evaluates whether a proposed solution addresses a real industry problem and has a credible path towards commercial adoption.
Who Can Apply for the HK$500,000 Subsidy?
The funding programme is not open to every international blockchain startup.
Applicants must meet Hong Kong's company registration and business activity requirements before submitting an application.
Eligible applicants must generally:
- Be a company incorporated in Hong Kong or a non-Hong Kong company registered under Part 16 of Hong Kong's Companies Ordinance.
- Hold a valid Hong Kong business registration certificate.
- Have commenced business in Hong Kong before applying.
- Meet the programme's requirements for technology companies, relevant institutions, recognised incubation programme participants or qualifying new ventures of established technology companies.
- Demonstrate substantive blockchain and digital asset activities or meet the programme's applicable alternative eligibility conditions.
Companies whose main activities are in other technology sectors may also be considered on a case-by-case basis if they have a credible plan to use blockchain technology to address existing business challenges.
Meeting the company registration requirements alone does not guarantee approval.
Each proposed project must also satisfy the programme's project eligibility conditions.
A Business Sponsor Is Required
One of the most important conditions is the requirement to work with a project sponsor.
Applicants must have a written sponsorship agreement with an eligible business or organisation that is actively involved in the project.
The sponsor is expected to help ensure that the proposed solution addresses a genuine commercial requirement. Potential sponsors may include established companies, local organisations supporting blockchain adoption, financial institutions and other qualifying entities.
The programme covers a broad range of industries, including banking, payments, insurance, securities, logistics, culture and entertainment.
Projects must demonstrate a practical use case that has not already been commercially adopted in the relevant form by the sponsor before the application.
This requirement is intended to encourage new development and testing rather than subsidising solutions that are already operating as part of an existing commercial service.
Applicants should therefore identify a suitable business partner early in the process and agree on the project's scope, responsibilities, timeline and expected outcomes.
How Applications Will Be Evaluated
Cyberport will assess applications based on their commercial relevance, technical readiness and potential to deliver measurable results.
The published evaluation criteria assign the highest weight to business impact and commercial adoption potential.
| Evaluation criteria | Weight |
|---|---|
| Business and technology impact, including measurable value | 30% |
| Commercial adoption potential and path to production | 30% |
| Innovation and technical readiness | 20% |
| Project sponsor suitability | 10% |
| Application quality and implementation plan | 10% |
The scoring structure suggests that a technically advanced proposal may not be sufficient on its own.
Applicants will need to explain what problem their solution addresses, how the proposed system will work, what the sponsor contributes and how the project could be used after the pilot stage.
The programme also limits each applicant to a maximum of three proposals, including applications submitted through affiliated entities and joint applications. The projects must have distinct components or functions.
Application Deadline and Funding Schedule
Applications for the second round opened on November 2, 2026.
Cyberport has set December 31, 2026, as the application deadline. Applicants are encouraged to complete the initial registration process by December 24, 2026, to allow time for eligibility checks and document preparation.
Approved projects are expected to be completed by June 30, 2027. Final reports must be submitted within 30 calendar days after project completion.
The subsidy is paid in two instalments:
- Initial payment: 50% of the approved subsidy after the funding agreement is signed and the required supporting documents are submitted.
- Final payment: The remaining 50% after project completion and acceptance of the required reports and documentation.
Companies interested in applying should review the official programme guide, registration requirements and project proposal instructions before submitting their applications.
Applications and supporting documents are submitted to Cyberport at dapilot@cyberport.hk.
HKMA and Cyberport Launch the tConnect Launchpad
Alongside the funding programme, the HKMA and Cyberport have launched the tConnect Launchpad, a separate initiative focused on testing tokenization-related financial use cases.
The platform is designed to bring together financial institutions, technology companies, asset owners and service providers.
Its purpose is to give eligible participants a structured environment in which to prepare, test and assess solutions involving tokenized assets, digital money, payments, settlement and interoperability.
A major focus is how tokenized assets can connect with financial infrastructure and how the associated payment or settlement process can work.
For example, a company developing a tokenized financial product may need to demonstrate how ownership records, payment instructions and the final transfer of assets interact. A technology provider working on cross-border settlement may need to show how different systems communicate and complete transactions.
The tConnect environment is intended to help participants test these processes before considering wider deployment.
The programme supports testing of delivery-versus-payment (DvP) and payment-versus-payment (PvP) arrangements. In these models, the transfer of one asset or currency is linked to the corresponding payment or transfer on the other side.
Settlement testing is currently conducted in Hong Kong dollars, although proposals may describe use cases involving other currencies.
Importantly, tConnect is not the same as the HK$500,000 subsidy programme. Participation in the Launchpad does not itself provide that grant.
Companies interested in tConnect must follow its separate eligibility and application process. Enquiries and application materials are available through tconnect@cyberport.hk.
Participation also does not amount to regulatory approval or endorsement of a company's product or service.
HKMA Advances Tokenized Financial Market Testing
The launch of tConnect forms part of the HKMA's wider work on tokenized financial infrastructure.
During Hong Kong FinTech Week, the authority also announced progress under Project Ensemble, including a new stage of work aimed at enabling 24-hour, seven-day settlement of tokenized transactions.
The HKMA said it had completed trial transactions involving recognised dealers in the secondary market for tokenized Exchange Fund Bills.
The trials are relevant because tokenized financial assets need reliable settlement arrangements if they are to move beyond limited demonstrations and become part of broader financial markets.
The authority also said it plans to expand the trials to include regulated stablecoins.
That does not mean stablecoins have already been fully integrated into every part of the system. It indicates that the HKMA intends to examine how regulated digital money could support settlement within tokenized financial market infrastructure.
The distinction between testing and full commercial deployment remains important. Each use case must still meet the relevant technical, operational and regulatory requirements.
What Hong Kong's Latest Move Means for the Global RWA Market
Hong Kong's latest announcements are significant because they address two different barriers to blockchain adoption.
The subsidy programme focuses on development costs. Building a working blockchain application, integrating it with existing systems and testing it with a business partner can require substantial resources. Financial support may reduce part of that initial burden for eligible companies.
The tConnect Launchpad addresses a different challenge: proving that tokenized assets can operate alongside existing financial infrastructure.
Tokenization projects often need more than a digital representation of an asset. They also require reliable settlement, legal arrangements, custody, payment systems and connections between institutions.
By supporting both development and testing, Hong Kong is attempting to create a more practical environment for institutional blockchain adoption.
The approach may also strengthen competition among financial centres seeking to attract digital asset companies and tokenization projects.
However, the announcements do not guarantee that every funded project will become commercially successful. Nor do they establish that tokenized assets will replace traditional financial instruments in the near term.
The outcome will depend on whether participating companies can demonstrate measurable business value, meet regulatory expectations and attract institutions willing to use the resulting products.
What Comes Next?
The immediate focus will be on applications for the subsidy scheme and proposals submitted to the tConnect Launchpad.
For the funding programme, the December 31 deadline gives eligible businesses a limited period to complete registration, secure a project sponsor and prepare their proposals.
For tConnect, the next stage will involve reviewing applications, assessing use cases and arranging onboarding and technical testing for selected participants.
The broader test for Hong Kong will be whether these initiatives produce solutions that can move beyond pilot environments.
If companies can demonstrate reliable settlement, practical interoperability and genuine demand from financial institutions, the programmes could contribute to the development of a more mature tokenized asset market.
For now, the announcements provide a clearer route for eligible businesses to develop and test blockchain applications in Hong Kong. They also show that the city's digital asset strategy is increasingly focused on financial infrastructure and real-world use cases, rather than cryptocurrency markets alone.
Frequently Asked Questions
How much funding is available under Hong Kong's blockchain subsidy programme?
Approved projects can receive up to 80% of their actual eligible project costs, subject to a maximum subsidy of HK$500,000 per project.
When is the application deadline?
Applications for the Blockchain and Digital Asset Pilot Subsidy Scheme 2.0 close on December 31, 2026. Cyberport recommends completing applicant registration by December 24.
Can overseas blockchain companies apply?
Yes, certain non-Hong Kong companies may qualify if they are registered in Hong Kong under the applicable company registration rules, hold a valid business registration certificate and have commenced business locally. They must also meet the programme's other eligibility requirements.
Does the funding cover RWA tokenization projects?
Yes. Real-world asset tokenization is among the areas covered by the programme, provided the proposed project meets the eligibility and assessment requirements.
What is the tConnect Launchpad?
tConnect is a digital asset innovation programme hosted by Cyberport in collaboration with the HKMA. It provides a structured testing environment for eligible organisations developing tokenization, payment, settlement and interoperability use cases.
Is tConnect the same as the HK$500,000 grant?
No. The subsidy scheme and tConnect Launchpad are separate initiatives. tConnect provides a pathway for testing and assessing use cases; it is not itself a grant programme.
Does joining tConnect mean a product has regulatory approval?
No. Participation in the Launchpad does not constitute regulatory approval or endorsement of a product, service or use case.
Editorial Note
This report distinguishes between Cyberport's financial subsidy programme and the separate HKMA-Cyberport tConnect Launchpad. Funding is subject to eligibility, assessment and approval. Programme details and deadlines should be checked against the official pages before an application is submitted.
