The Asian Infrastructure Investment Bank (AIIB) is looking to leverage Hong Kong’s expanding digital finance ecosystem by exploring emerging technologies such as tokenised payments and digital settlement systems, a senior bank official said. This initiative forms part of the bank’s wider strategy to modernize its capital market operations.
Domenico Nardelli, AIIB’s treasurer and acting chief financial officer, highlighted the institution’s interest in identifying financial technology applications that could be adapted for use in the bank’s treasury functions. Headquartered in Beijing, the multilateral development bank has been focused on scaling up its global fundraising capacity, having raised about US$10 billion annually over the past two years. AIIB aims to increase this target to a record US$11 billion in the current year.
As part of its expansion efforts, the AIIB plans to establish a new office in Hong Kong by the end of 2026, marking its second overseas hub after opening in Abu Dhabi in 2024. The move is designed to place the AIIB closer to regional clients and key global liquidity sources amid Asia’s rapidly developing digital asset markets.
Hong Kong has been broadening its digital asset infrastructure and fortifying connections with other regional fintech centers. Last month, the city approved its first “digitally native” tokenised fund, allowing professional investors to hold direct ownership of assets on a public blockchain. Financial regulators have also committed to launching a digital asset platform later this year to support the issuance and settlement of tokenised bonds, transitioning these technologies from pilot stages to core market infrastructure.
Nardelli noted that having a physical presence in Hong Kong would enhance the AIIB’s capability to engage with both the local Hong Kong dollar market and other currencies, citing the city’s status as a hub for offshore investors.
The bank is already active in Hong Kong’s bond market. Earlier this year, AIIB issued a three-year sustainable development bond totaling HK$4 billion, its second issuance in the city following a debut sale in early 2025.
Despite these growth initiatives, Nardelli emphasized that geopolitical tensions remain a significant risk factor affecting the bank’s capital market outlook, citing concerns such as elevated oil prices, inflationary pressures, and distortions in the U.S. dollar yield curve—the key market for multilateral development bank funding. In response, AIIB has approved a dedicated financing facility to support member countries experiencing economic disruptions related to food and energy security, particularly those stemming from the Middle East conflict.
“We need to understand the mood of investors, their concerns, and how they are prepared to continue deploying capital,” Nardelli said.
Despite the geopolitical and macroeconomic uncertainties, the official expressed confidence in AIIB’s ability to attract untapped global liquidity through its new Hong Kong hub and a broader, more diversified array of debt instruments. He acknowledged, however, that more established multilateral development banks continue to hold stronger global name recognition.