Hong Kong trials real-value transactions with tokenized bank deposits

Hong Kong has launched the pilot testing phase for tokenized deposits and crypto assets (Project Ensemble), utilizing real-value transactions. The HKMA (Hong Kong Monetary Authority) said last week that the launch transitions the initiative from a sandbox experiment to a live value-bearing settlement.

The HKMA described the project as pivotal for the country’s crypto roadmap, adding that the city is working towards becoming the region’s crypto hub. The new pilot is expected to operate through 2026 and will initially focus on treasury management, tokenized money-market fund transactions, and real-time liquidity.

The Hong Kong de facto central bank initiated the sandbox for Project Ensemble in August 2024, aiming to integrate tokenization into traditional banking through the e-HKD. The sandbox has enabled banks and industry partners to experiment with tokenized deposits and test end-to-end crypto settlement. 

The HKMA also stated that the HKD Real Time Gross Settlement (RTGS) system will support inter-bank settlements under the pilot. It pointed out that the environment will be upgraded over time to support around-the-clock (24/7) tokenized central bank money (CeBM) settlement.

Yue says Ensemble Sandbox concepts are now live 

The Chief Executive of the HKMA, Eddie Yue, said EnsembleTX marks a pivotal moment in the HKMA’s journey. He pointed out that the concepts and details tested in the Ensemble Sandbox are now live and being applied in real-value transactions to deliver tangible benefits.  

Meanwhile, the HKMA said this milestone reinforces Hong Kong’s role as a pioneer in shaping the future of digital finance. The central bank institution has invited stakeholders with innovative, real-world use cases that leverage tokenized deposits to participate in this collaborative effort to develop the tokenization ecosystem in Hong Kong.

“To scale tokenization of investment products, interoperability is key…A critical step in that direction is today’s initiative announced by the HKMA which will gradually allow interbank settlement of tokenized deposits in real time 24/7.” 

–Julia Leung, CEO of the Securities and Futures Commission (SFC)

Leung said the SFC is committed to working with the HKMA and market participants in driving tokenization use cases leveraging Ensemble TX forward. She believes this will help establish a dynamic and future-ready financial ecosystem in Hong Kong. 

HSBC completes first transaction in EnsembleTX 

The Hongkong and Shanghai Banking Corporation completed the first transaction in EnsembleTX on November 13. Ant International transferred $489,000 (~HK$3.8M) in this inaugural transaction to its wallet held at another domestic bank. Vincent Lau, HSBC’s global head of Digital Money and Global Payments Solutions, said the interoperability marks a crucial step for Hong Kong to become a global hub for innovation in crypto. 

Standard Chartered Bank (Hong Kong), a subsidiary of Standard Chartered PLC, also completed two transactions leveraging two real-value use cases in EnsembleTX. The first case involved interbank tokenized deposit transfers among Ant International entities. Meanwhile, the second case involved the transfer of tokenized deposits to help Futu Securities International (Hong Kong) subscribe to China Asset Management (Hong Kong)’s tokenized money market fund (MMF).  

Mary Huen, the CEO of Standard Chartered (Hong Kong) and Greater China and North Asia, said the success of these real-value transactions use cases demonstrated the massive potential of tokenized assets in facilitating interbank settlements. She also noted that tokenized deposits will play an integral role in the next generation of financial market infrastructure.

The 2025 Policy Address unveiled plans to push Project Ensemble, encouraging commercial banks to introduce tokenized deposits and promote the live trading of tokenized assets. The HKMA and the SFC will collaborate to advance the practical applications of tokenization across a diverse range of asset classes. The two have also vowed to expand EnsembleTX’s use cases to cover more sectors within the financial industry.

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