Hong Kong bank pilot opens 24/7 cash settlement for tokenized fund deals
RWA Signal Insight
InfrastructureThe Hong Kong Monetary Authority has upgraded its Project Ensemble pilot, EnsembleTX, to enable 24/7 interbank cash settlement using tokenized central bank money. This development allows participating banks to settle transactions for corporate treasury management and tokenized money market funds outside of traditional banking hours. Twelve banks and twenty industry pioneers, including major players like BlackRock, Ant International, and China Asset Management (Hong Kong), are currently participating in the initiative. By utilizing tokenized deposits for customer-facing activity and tokenized central bank money for interbank settlement, the pilot aims to modernize financial infrastructure. While this upgrade significantly improves liquidity and settlement efficiency, the HKMA clarified that continuous settlement does not automatically guarantee 24/7 trading for every individual fund, as availability remains dependent on specific bank and platform arrangements. The project also recently completed trials for secondary-market transactions in tokenized Exchange Fund Bills. This milestone represents a critical step in Hong Kong's broader strategy to establish a robust, real-value digital asset ecosystem that bridges traditional finance with blockchain-based settlement.
Key points
- HKMA upgraded EnsembleTX to support 24/7 interbank settlement via tokenized central bank money.
- Twelve banks and twenty industry pioneers, including BlackRock, are participating in the pilot.
- The infrastructure supports corporate treasury management and secondary trading of tokenized funds.
- Recent trials successfully executed secondary-market trades of tokenized Exchange Fund Bills.
Background
Project Ensemble is a multi-year initiative led by the Hong Kong Monetary Authority to develop a wholesale central bank digital currency (wCBDC) ecosystem. It focuses on creating a common platform for tokenized deposits and digital assets to facilitate seamless interbank settlement. The project aims to enhance the efficiency of Hong Kong's financial markets by integrating blockchain technology into existing real-time gross settlement systems.