Banks from Hong Kong and China are testing blockchain links for credit verification

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) agreed to formalize the pilot project for cross-border credit information sharing in the Greater Bay Area.

The pilot project, which started in 2024, will strengthen data connectivity between Hong Kong and mainland China in the Guangdong, Hong Kong and Macau region.

According to CaixinHKMA Deputy Director Howard Lee confirmed that the program will move from pilot to official operation after successful testing.

Seven retail banks, including HSBC, Standard Chartered and Bank of China (Hong Kong), and three credit reference agencies are participating.

The system now operates active blockchain nodes in both Hong Kong and Shenzhen, creating a two-way bridge for verified credit data.

Related: Hong Kong supports commercial banks’ tokenization initiatives in 2025 policy speech

How the Blockchain Platform Verifies Credit Data

The pilot includes the Shenzhen-Hong Kong Cross-Border Data Verification Platform, a system that uses blockchain technology to secure and validate the exchange of credit data. One blockchain node has been set up in Hong Kong and another in Shenzhen to facilitate encrypted data transfers between authorized institutions.

The system allows individuals and companies to obtain data from registered providers and upload it to the verification platform. An encryption algorithm then generates a 64-bit hash code that represents the data. The corresponding party across the border matches the code to confirm authenticity, allowing legitimate data sharing and preventing tampering or unauthorized access.

The structure of the platform ensures that privacy and data protection requirements are met, while maintaining the integrity of financial information. It also reduces reliance on manual verification, enabling faster processing of credit information between Hong Kong and Shenzhen.

Stablecoin licensing applications make progress under new framework

In addition, the HKMA has reported progress on its new stablecoin regulatory framework, which came into effect on August 1, 2025. By the end of September, 36 companies had applied for licenses after expressions of interest from 77 companies. The first set of approvals is expected to be received in early 2026.

Applicants include banks, securities firms, payment providers and e-commerce platforms. The framework mandates full Know Your Customer (KYC) identification for all stablecoin transactions, in line with Basel banking standards to facilitate participation by financial institutions.

Standard Chartered, a participant in Hong Kong’s stablecoin sandbox, confirmed plans to apply for a license through a joint venture with Anchorpoint Financial, Hong Kong Telecom (HKT) and Animoca Brands.

Related: Hong Kong’s Stablecoin Law Will Become China’s Crypto Policy Sandbox