HKMA Launches Project Ensemble Sandbox to Pave the Way for Tokenised Asset Settlement with wCBDC

The Hong Kong Monetary Authority (HKMA) has launched Project Ensemble Sandbox, introducing four key themes of asset tokenisation use cases for its initial round of experimentation.

The Sandbox aims to explore innovative financial market infrastructure (FMI) designed to enable seamless interbank settlement of tokenised money through wholesale central bank digital currency (wCBDC). With the Sandbox fully set up, the HKMA focuses on transactions involving tokenised assets and facilitating interbank settlements using experimental tokenised money.

Participating banks, including HSBC, Standard Chartered, and Bank of China (Hong Kong), have connected their tokenised deposit platforms to the Sandbox. This linkage will allow them to conduct interbank payment-versus-payment and delivery-versus-payment settlement experiments.

HKMA and the Securities and Futures Commission (SFC) are also collaborating to establish a regulatory framework to support the sustainable growth of Hong Kong’s tokenised asset market. Moreover, HKMA plans to work with the Bank for International Settlements Innovation Hub Hong Kong Centre and engage with the central bank digital currency (CBDC) Expert Group to further advance the Sandbox initiative.

These efforts reflect HKMA’s commitment to scaling up the interoperability of tokenised financial services, positioning Hong Kong at the forefront of digital asset innovation.