Hong Kong moves from theory to practice with real-value tokenised money, asset deals

Core Viewpoint - Hong Kong's Monetary Authority has initiated a pilot program for real-value transactions using tokenised deposits and digital assets, enhancing the city's position as a fintech hub [1][2]. Group 1: Pilot Program Details - The pilot program, part of Project Ensemble, will run until 2026 and focuses on enabling market participants to utilize tokenised deposits for money-market funds and real-time liquidity management [2]. - Seven commercial banks and 13 industry participants are involved in the pilot, aiming to facilitate faster, more transparent, and efficient tokenised transactions [1][6]. Group 2: Corporate Participation and Demand - HSBC completed a cross-bank transfer of HK$3.8 million (US$489,000) in tokenised deposits for Ant International, highlighting the practical application of the pilot [3]. - There is a significant increase in demand for tokenisation from corporate treasuries, with a survey indicating a sixfold surge expected over the next two years [4][5]. Group 3: Benefits of Tokenised Deposits - Tokenised deposits offer continuous access, reduced costs, and enhanced cash management capabilities, allowing businesses to automate payments based on predefined conditions [5]. - The programmability of tokenised deposits is seen as a key advantage for businesses, aligning with the growing trend towards digital asset management [5].