On June 9th, Visa and Chainlink achieved a key milestone in the e-HKD + pilot program of the Hong Kong Monetary Authority (HKMA), successfully testing cross-border blockchain transactions using central bank digital currencies (CBDCS) and stablecoins.
This experiment was conducted in collaboration with ANZ, China AMC and Fidelity International, and it is one of the first simulation experiments in the real world to use programmable currencies for cross-border investment in tokenized assets. In the experiment, Chainlink’s cross-chain Interoperability Protocol (CCIP) was used to connect ANZ Bank’s private blockchain DAS chain with the public testnet of Ethereum. This enables an Australian investor to exchange A stablecoin backed by the Australian dollar (A $DC) for digital Hong Kong dollars (e-HKD) and use the digital Hong Kong dollars to purchase tokenized money market funds (MMF) provided by Hong Kong asset management companies.
This process achieves near-instant settlement, aiming to eliminate the risk of delays in traditional cross-border transactions. Visa’s tokenized Asset Platform (VTAP) powers the creation and flow of digital currencies, while Chainlink CCIP coordinates smart contracts for the pay-to-pay (PVP) and delivery-to-Pay (DVP) processes. The pilot also includes on-chain authentication through Chainlink’s compliance services and testing token offerings using the ERC-20 and ERC-3643 standards to evaluate regulatory compatibility and security features.
This simulation demonstrated how Australian investors could use central bank digital currencies or stablecoins to directly invest in Hong Kong funds, thereby eliminating intermediaries, reducing waiting times and enhancing transparency. Currently, it may take two to three days for a fund subscription to be settled. However, with blockchain technology, the entire process can be completed in just a few seconds and can be carried out around the clock, even on weekends and holidays.
As the tokenized asset market is expected to exceed $2 trillion by 2030, the pilot program of the Hong Kong Monetary Authority reflects the growing global trend of modernizing capital markets through digital infrastructure. The e-HKD + program has been expanded on the basis of the early stage, incorporating tokenized bank deposits and programmable payments into public and permissioned blockchains. Fidelity and ChinaAMC have already issued tokenized funds in their previous moves. They have emphasized how programmable digital currencies can improve fund issuance, reduce operational frictions and expand the investor base. The participation of ANZ Bank, including its A $DC stablecoin and its role in foreign exchange conversion, further demonstrates how traditional banks integrate digital assets into cross-border finance.
This pilot will now move on to the next stage, conducting end-to-end transaction tests as well as performance evaluations in terms of compliance, speed and interoperability. It is expected that the test results will provide a reference for the regulatory framework and set standards for the future use of central bank digital currencies and stablecoins in the global financial market.
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