Hong Kong launches pilot phase of 'Project Ensemble'…tests tokenized payments based on real transactions

Hong Kong has started testing real-transaction-based payments using tokenized deposits and digital assets.

On the 17th (local time), the Hong Kong Monetary Authority (HKMA) said that 'Project Ensemble' has transitioned from the experimental sandbox phase to a pilot phase that performs settlements with real value.

Project Ensemble aims to integrate tokenization technology into the traditional financial system centered on e-HKD. Since August last year, the HKMA has been operating a sandbox to support participating banks and industry partners in end-to-end testing of digital asset payment processes using tokenized deposits. This transition is described as a 'pivotal stage' in Hong Kong's digital asset roadmap.

The pilot phase is scheduled to run until 2026 and will initially focus on tokenized money market fund (MMF) transactions and experiments in real-time liquidity and treasury management. The HKMA plans to focus on verifying the usefulness of tokenization for specific financial functions within traditional finance, such as short-term liquidity allocation and real-time asset transfers.

Interbank payments in the early part of the pilot phase will be supported through the Hong Kong dollar real-time gross settlement (RTGS) system. The HKMA said it plans to gradually upgrade technologies and systems to expand the testing environment so that 24-hour continuous (24/7) payments based on central bank-issued tokenized currency become possible.