Hong Kong’s financial regulator, HKMA, has introduced a new SandBox initiative to test and refine the use of tokenized money.
Initiative Goals
The Hong Kong Monetary Authority (HKMA) has launched an initiative called “Project Ensemble SandBox” to enhance efforts in the tokenization of real-world assets. According to a press release on August 28, the aim of the initiative is to test and refine the use of tokenized money for interbank settlements and transactions involving tokenized assets. The initial round of experimentation will focus on four main themes: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance.
Banks Connecting to SandBox
According to HKMA, banks have already connected their tokenized deposit platforms to the sandbox, allowing real-time testing of payment-versus-payment and delivery-versus-payment settlement mechanisms.
Ant International Participation
Chinese tech company Ant International has announced its participation in the sandbox with a focus on liquidity management. The company will work with the Hong Kong branches of Standard Chartered Bank and HSBC to develop a global liquidity management solution supporting real-time, cross-border payments.
HKMA's initiative to launch a SandBox for the testing of real-world asset tokenization promises significant advancements in innovation and progress within Hong Kong's tokenization market.
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