Major Players in HKMA’s e-HKD Pilot Phase 2
The Hong Kong Monetary Authority (HKMA) has announced the commencement of Phase 2 of the e-HKD Pilot Programme, marking a significant step in the exploration of digital money use cases. This phase is part of Project e-HKD+, an initiative aimed at expanding the digital money ecosystem in Hong Kong.
Innovative Use Cases for Digital Money
Phase 2 of the HKMA’s e-HKD Pilot Programme will see 11 groups of firms testing various innovative use cases for digital money, including e-HKD and tokenised deposits. The selected firms will explore applications such as cross-border payments, tokenisation for asset investment, and settlement of tokenised assets.
Key Participants in the Programme and Their Roles
- Visa and ANZ: These firms will explore how Australian corporates can invest in Hong Kong-based funds using digital currency. They will test a sandbox environment to issue fiat-backed tokens and facilitate near-real-time Delivery vs Payment (DvP) settlements for cross-border and interbank transfers. Visa’s participation builds on its Phase 1 work, which focused on interbank B2B payment flows using tokenised deposits. ANZ brings its expertise in decentralised networks and asset tokenisation, including the development of an AUD stablecoin.
- DBS: DBS will investigate how digital money can enable a scalable ESG reward platform by driving the adoption of purpose-bound money.
- HSBC: HSBC will focus on the secure use of digital money on permissioned protocols using public distributed ledger technology (DLT) for value storage and transfer. This could address privacy concerns and serve as a settlement utility for tokenised assets.
- Mastercard, Kasikornbank (KBank), and Airstar Bank: These institutions will examine how digital money can facilitate domestic and international trade finance.
Industry Collaboration and Future Prospects
The HKMA has also introduced the e-HKD Industry Forum to foster collaboration among participants. Industry-led working groups will address issues such as programmability and offline payments. The results of Phase 2 will help the HKMA evaluate the technical and legal groundwork for potential e-HKD issuance, with key findings expected by the end of 2025.
HKMA’s Commitment to Innovation
Eddie Yue, Chief Executive of the HKMA, emphasized the authority’s commitment to digital money innovation. “Project e-HKD+ signifies the HKMA’s commitment to digital money innovation. The e-HKD Pilot Programme has provided a valuable opportunity for the HKMA to explore with the industry how new forms of digital money can add unique value to the general public,” Yue said. “We look forward to working closely with industry participants in Phase 2 to co-create various innovative use cases.”
Hong Kong Monetary Authority – HKMA launches Phase 2 of the e-HKD Pilot Programme
Hong Kong Monetary Authority – Central Bank Digital Currency (CBDC)