TLDR
- Hong Kong has officially launched the pilot phase of Project Ensemble for tokenized deposits and crypto assets.
- The HKMA’s initiative transitions from a sandbox environment to live value-bearing transactions.
- The pilot will run until 2026, focusing on treasury management, tokenized money-market funds, and real-time liquidity.
- The HKD Real Time Gross Settlement system will facilitate inter-bank tokenized deposit settlements.
- The first transaction under the pilot took place on November 13, involving HSBC and Ant International.
Hong Kong has officially launched the pilot testing phase for tokenized deposits and crypto assets, a significant step in its ambition to become a crypto hub. The initiative, called Project Ensemble, shifts from a sandbox environment to a live transaction system. The Hong Kong Monetary Authority (HKMA) aims to integrate tokenization into traditional banking using the e-HKD.
Project Ensemble Aims to Revolutionize Crypto in Hong Kong
The HKMA initiated Project Ensemble in August 2024 as a testing ground for tokenized deposits and crypto settlements. The project focuses on treasury management, tokenized money-market fund transactions, and real-time liquidity. These efforts are designed to enhance the country’s digital finance infrastructure.
The newly launched pilot will run until 2026, with an emphasis on real-value transactions. The HKD Real Time Gross Settlement (RTGS) system will support inter-bank settlements. Over time, the environment will evolve to support 24/7 settlement of tokenized central bank money (CeBM).
Eddie Yue, Chief Executive of the HKMA, described the launch as a pivotal moment for the country. “EnsembleTX marks a new chapter in Hong Kong’s digital finance journey,” he said. The testing phase has now transitioned into real-world applications, delivering tangible benefits.
Banks Complete First Transactions Under EnsembleTX Pilot
The first transaction under Project Ensemble took place on November 13. The Hong Kong and Shanghai Banking Corporation (HSBC) transferred $489,000 (approximately HK$3.8M) to a domestic bank’s wallet. Ant International was the recipient of this inaugural tokenized deposit transfer.
Standard Chartered Bank (Hong Kong) also completed two real-value transactions within the project. These cases involved interbank transfers of tokenized deposits among Ant International entities. The second use case involved tokenized deposits for subscribing to a tokenized money market fund.
Mary Huen, CEO of Standard Chartered (Hong Kong), emphasized the growing role of tokenized assets. She stated that these assets are vital for the next generation of financial market infrastructure.
Hong Kong Paves Way for Expansion of Tokenized Assets
Hong Kong’s 2025 Policy Address revealed plans to expand Project Ensemble. The HKMA and Securities and Futures Commission (SFC) are collaborating to promote tokenized assets across diverse sectors. The goal is to facilitate the live trading of tokenized deposits and encourage banks to integrate these assets into their offerings.
Julia Leung, CEO of the SFC, stressed the importance of interoperability in tokenization. “A critical step in that direction is today’s initiative announced by the HKMA,” she said. This project will enable real-time interbank settlements of tokenized deposits, laying the foundation for broader use cases in the future.
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