Hong Kong launches transaction-based tokenized deposit pilot, a major step towards commercialization

Hong Kong has entered the pilot phase of trading tokenized deposits and digital assets at real value, further accelerating its strategy as a cryptocurrency hub.
Block announced that Hong Kong has officially launched its Project Ensemble pilot program, which will enable tokenized deposits and real-world transactions using digital assets.
The Hong Kong Monetary Authority (HKMA) described the development as "a crucial step in moving beyond traditional sandbox experiments to the settlement stage where real value moves."
The HKMA plans to launch a sandbox environment for the project in August 2024, allowing banks and industry partners to trade digital assets through tokenized deposits using e-HKD.
The newly launched pilot program is expected to run until 2026 and will initially cover tokenized money market fund transactions, real estate transactions, and other transactions.
According to the HKMA, the initial pilot will use the Hong Kong dollar real-time gross settlement (RTGS) system to support interbank settlements,
The plan is to expand to a 24/7/365 settlement environment using tokenized central bank currency. HKMA CEO Eddie Yue said, "We have reached the intersection of innovation and execution."
"The concepts demonstrated in the Boundbox will now be applied to transactions where real value moves, delivering real benefits to market participants."
Julia Leong, CEO of the Securities and Futures Commission (SFC), also said that interoperability is key to promoting tokenization of investment products at scale.
"The HKMA's move marks an important step towards a future where interbank tokenized deposits can be settled in real time, 24/7," he emphasized.