A recent pilot under the HKMA’s e-HKD+ initiative explored the use of digital currencies for cross-border investment transactions.
The Pilot Scenario
This experiment involved converting an AUD-backed stablecoin into a Hong Kong central bank digital currency (CBDC) and then utilizing it to buy a tokenized money market fund.
Collaboration and Technological Integration
The simulation was carried out in collaboration with ANZ, Fidelity International, and ChinaAMC. The ANZ’s proprietary blockchain, DASChain, was connected to Ethereum’s public testnet via Chainlink’s Cross-Chain Interoperability Protocol (CCIP), facilitating the transfer and conversion of digital assets between private and public blockchain environments.
Digital Assets and Platforms
The stablecoin used in this transaction, A$DC, was issued by ANZ. The e-HKD served as a means to access investment products. According to Visa officials, their Tokenized Asset Platform (VTAP) managed the digital money lifecycle, while Chainlink’s infrastructure handled necessary smart contracts for transactions under payment-versus-payment (PvP) and delivery-versus-payment (DvP) mechanisms.
Efficiency in Asset Subscription
The trial included on-chain identity verification and token issuance using both ERC-20 and ERC-3643 standards to assess regulatory compliance and security. Project participants highlighted how these digital money mechanisms could streamline the investment process, significantly reducing settlement times from days to seconds and supporting continuous operations outside of standard business hours.
Broader Context and Future Prospects
The pilot reflects increasing institutional interest in tokenized asset markets, which are expected to surpass USD 2 trillion by the end of the decade. The HKMA’s ongoing e-HKD+ programme extends previous research on programmable money, now including use cases involving tokenized bank deposits and transactions across multiple blockchain types.
Officials from Fidelity and ChinaAMC noted that programmable digital currencies could reduce back-office complexity and increase access to investment products.
