In order to promote tokenized applications, the Hong Kong Monetary Authority launched the "Ensemble Project Sandbox" today (28th). The first phase of the trial will focus on "fixed income and investment funds", "liquidity management", "green and sustainable finance" and There are 25 participating institutions in the four major tokenized asset use case themes of "Trade and Supply Chain Finance", including Hong Kong's four major banks - HSBC, BOC Hong Kong, Hang Seng and Standard Chartered.
According to reports, the "Ensemble Project" aims to explore innovative financial market infrastructure based on blockchain platforms and promote seamless interbank settlement with tokenized currency through wholesale central bank digital currency (wCBDC).
Through the sandbox test, the HKMA will verify the technical interoperability between "tokenized assets", "tokenized deposits" and "wCBDC", and will also allow industry participants to use tokenized assets in actual business scenarios. Transactions are tested end-to-end.
The Hong Kong Monetary Authority said that the construction of the sandbox has been completed, aiming to use "experimental tokenized currencies" to promote interbank settlement and focus on "tokenized asset transactions". Participating banks in the Ensemble project architecture working group have connected their tokenized deposit platforms to the sandbox to prepare for future experiments of "synchronous settlement of cross-bank payments" and "settlement of goods and banks".
The HKMA added that the SFC, as a key member of the working group, plays an important role in formulating a regulatory framework to support the continued development of Hong Kong’s tokenized asset market. In addition, the SFC will work with the HKMA to lead tokenization initiatives related to the asset management industry to promote the widespread application of tokenization and enhance Hong Kong's status as a premier asset and wealth management center.
The Hong Kong Monetary Authority held a launch ceremony for the sandbox today. Chief Executive Eddie Yue said: "Since the launch of the Ensemble project in March this year, the industry has responded positively to developing innovative solutions to reshape the digital financial sector."
The HKMA looks forward to cooperating with the Securities and Futures Commission, other central bank agencies, academia and relevant industry participants in the future to further promote the innovative development of Hong Kong’s tokenization market.
"Today's launch of the sandbox confirms that the combination of innovation and supervision can open up new paths for our financial markets," said SFC Chief Executive Liang Fengyi.
As the two major builders of Hong Kong's financial market, the Securities and Futures Commission and the Hong Kong Monetary Authority share the same vision and are committed to leading Hong Kong's financial system into the future through innovative market infrastructure.
As for the international level, the HKMA stated that it will explore future cooperation opportunities with the Hong Kong Center under the Bank for International Settlements Innovation Hub on one or more tokenization topics, and work with members of the Central Bank Digital Currency (CBDC) Expert Group to use their Expertise further drives the development of the sandbox.
〈Promote tokenized applications! The Hong Kong Monetary Authority launches the "Ensemble Project Sandbox". This article was first published on "Block Guest".