Hang Seng Bank has completed two use cases in Phase 2 of the e-HKD Pilot Programme under the Hong Kong Monetary Authority’s (HKMA) Project e-HKD+, making it the only bank to conduct two pilots under the themes of programmability and tokenised asset settlement.
The pilots examined how an e-HKD and tokenised deposits could be applied in reward programmes and investment transactions, offering insights into programmability, privacy, and interoperability to support Hong Kong’s digital money development.
The first pilot, conducted with FORMS HK, explored the use of programmable digital money to enhance customer engagement through digital vouchers backed by hypothetical e-HKD on a rewards platform.
The system leveraged both private and public permissioned Distributed Ledger Technology (DLT) networks.
Surveys found that most SME merchants valued the platform’s instant settlement feature, which could improve cash flow through the use of e-HKD and tokenised deposits.
The second pilot, carried out with Boston Consulting Group and Aptos Labs, examined the commercial potential of using digital money to settle tokenised funds on a public permissioned blockchain.
Survey findings showed strong interest from investors in Hong Kong and Mainland China in the possibilities enabled by digital money and tokenised funds, highlighting Hong Kong’s potential to strengthen its position as an international financial centre.
Both pilots tested private and public permissioned blockchain networks, underlining the potential of interoperability in developing a flexible and resilient digital money ecosystem.
Luanne Lim, Executive Director and Chief Executive of Hang Seng Bank, said:
“Through our pilots in digital rewards and the first proof-of-concept of tokenised fund for Hang Seng, we demonstrated benefits such as improved efficiency and faster settlement. We look forward to working closely with regulators and partners to foster a secure and sustainable digital money ecosystem, enhancing Hong Kong’s position as an international financial centre.”
Featured image credit: Edited by Fintech News Hong Kong, based on image by vefimov via Freepik