Hong Kong has launched the pilot testing phase for tokenized deposits and crypto assets (Project Ensemble), using fair value transactions. The HKMA (Hong Kong Monetary Authority) said last week that the launch transforms the initiative from a sandbox experiment to an actual, value-bearing settlement.
The HKMA described the project as crucial to the country’s crypto roadmap, adding that the city is working to become the region’s crypto hub. The new pilot is expected to be active through 2026 and will initially focus on treasury management, tokenized money market fund operations and real-time liquidity.
Hong Kong’s de facto central bank initiated the sandbox for Project Ensemble in August 2024, with the aim of integrating tokenization into traditional banking via the e-HKD. The sandbox has allowed banks and industry partners to experiment with tokenized deposits and test end-to-end crypto settlement.
The HKMA also stated that the HKD Real Time Gross Settlement (RTGS) system will support interbank settlements under the pilot. It was pointed out that the environment will be upgraded over time to support round-the-clock (24/7) settlement of tokenized central bank money (CeBM).
Yue says the Ensemble Sandbox concepts are now live
HKMA General Manager Eddie Yue said EnsembleTX marks a pivotal moment in the HKMA’s journey. He pointed out that the concepts and details tested in the Ensemble Sandbox are now live and being applied in real-value transactions to deliver tangible benefits.
Meanwhile, the HKMA said this milestone strengthens Hong Kong’s role as a pioneer in shaping the future of digital finance. The central banking institution has invited stakeholders with innovative, real-world use cases using tokenized deposits to join this joint effort to develop the tokenization ecosystem in Hong Kong.
“To scale up the tokenization of investment products, interoperability is critical… A crucial step in that direction is today’s initiative announced by the HKMA, which will gradually enable interbank settlement of tokenized deposits in real time 24/7.”
–Julia LeungCEO of the Securities and Futures Commission (SFC)
Leung said the SFC is committed to working with the HKMA and market participants in driving tokenization use cases using Ensemble TX. She believes this will help build a dynamic and future-proof financial ecosystem in Hong Kong.
HSBC completes first transaction in EnsembleTX
The Hong Kong and Shanghai Banking Corporation completed the first transaction in EnsembleTX on November 13. Ant International transferred $489,000 (~HK$3.8 million) to its wallet at another domestic bank in this first transaction. Vincent Lau, Global Head of HSBC Digital Money and Global Payments Solutions, said the interoperability marks a crucial step for Hong Kong to become a global hub for crypto innovation.
Standard Chartered Bank (Hong Kong), a subsidiary of Standard Chartered PLC, also completed two transactions utilizing two fair value use cases in EnsembleTX. The first case involved interbank tokenized deposit transfers between Ant International entities. Meanwhile, the second case involved the transfer of tokenized deposits to help Futu Securities International (Hong Kong) subscribe to China Asset Management’s (Hong Kong) tokenized money market fund (MMF).
Mary Huen, CEO of Standard Chartered (Hong Kong) and Greater China and North Asia, said the success of these real-value transaction examples demonstrated the enormous potential of tokenized assets in facilitating interbank settlements. She also noted that tokenized deposits will play an integral role in the next generation of financial market infrastructure.
The 2025 Policy Address unveiled plans to boost Project Ensemble, encouraging commercial banks to introduce tokenized deposits and promote live trading of tokenized assets. The HKMA and the SFC will work together to advance the practical applications of tokenization across a wide range of asset classes. The two have also pledged to expand EnsembleTX’s use cases to more sectors within the financial industry.