The Hong Kong Monetary Authority (HKMA) has launched a new initiative, “Project Ensemble Sandbox,” to further advance its efforts in tokenizing real-world assets (RWA).
In an August 28 press release, the HKMA announced that the initiative is designed to test and optimise the use of tokenized money for interbank settlements and transactions involving tokenized assets. The sandbox will initially concentrate on four key areas: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance.
According to the HKMA, several banks have already integrated their tokenized deposit platforms into the sandbox, enabling real-time testing of payment-versus-payment and delivery-versus-payment settlement mechanisms. However, the specific banks were not named.
Eddie Yue, Chief Executive of the HKMA, highlighted the importance of the Project Ensemble Sandbox, stating,
“This sandbox marks a key advancement for the HKMA and the industry in applying tokenization to real-world scenarios. Since Project Ensemble’s March launch, we’ve seen strong industry interest in innovative solutions. We look forward to working with the SFC, central banks, academia, and industry participants to advance tokenization in Hong Kong.”
Julia Leung, Chief Executive Officer of Hong Kong’s Securities and Futures Commission (SFC), echoed this sentiment, adding,
“The Sandbox launch today exemplifies how innovation and regulation can go hand in hand to forge a new path for our financial markets. As major architects of Hong Kong’s financial system, the SFC and the HKMA share the same vision and dedication to future-proofing the city’s financial infrastructure through innovative market solutions.”
Ant International, a leading Chinese tech firm, announced its involvement in the sandbox in a separate development. The company noted that it will collaborate with the Hong Kong branches of Standard Chartered Bank and HSBC to create a global liquidity management solution for real-time, cross-border payments.
Kelvin Li, Head of Platform Tech at Ant International, remarked,
“Hong Kong’s status as a global financial hub makes it a strategic focus for us. We are excited to partner with the HKMA on Project Ensemble, leveraging our expertise and innovative solutions to advance Hong Kong’s fintech sector and explore the potential of emerging technologies like tokenization.”
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