Visa and Chainlink have accomplished a key milestone within the Hong Kong Financial Authority’s (HKMA) e-HKD+ Pilot Programme, successfully testing a cross-border blockchain transaction utilizing central financial institution digital forex (CBDC) and stablecoins.
The trial, performed in partnership with ANZ, ChinaAMC, and Fidelity International, is among the first real-world simulations of programmable cash getting used for cross-border funding in tokenized belongings.
The take a look at used Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to attach ANZ’s non-public blockchain, DASChain, with Ethereum’s (ETH) public testnet.
This enabled an Australian investor to change an AUD-backed stablecoin (A$DC) for e-HKD and use the digital Hong Kong greenback to buy a tokenized cash market fund (MMF) provided by asset managers in Hong Kong.
The method achieved near-instant settlement and was designed to get rid of the standard dangers of delayed cross-border transactions.
Streamlining fund entry
Visa’s Tokenized Asset Platform (VTAP) powered the creation and motion of digital cash, whereas Chainlink CCIP coordinated good contracts for payment-versus-payment (PvP) and delivery-versus-payment (DvP) flows.
The pilot additionally included on-chain identification verification by way of Chainlink’s compliance companies and examined token issuance utilizing ERC-20 and ERC-3643 requirements to guage regulatory compatibility and safety features.
The simulation reveals how buyers in Australia may use both a CBDC or stablecoin to instantly spend money on Hong Kong-based funds, eradicating intermediaries, lowering wait instances, and rising transparency.
At present, fund subscriptions can take two to a few days to settle. With blockchain, your entire course of may occur in seconds, across the clock, even on weekends and holidays.
Groundwork for scalable digital finance
With tokenized asset markets projected to exceed $2 trillion by 2030, the HKMA’s pilot displays a rising international push to modernize capital markets by way of digital infrastructure.
The e-HKD+ initiative expands on earlier phases to incorporate tokenized financial institution deposits and programmable funds throughout each public and permissioned blockchains.
Constancy and ChinaAMC, who’ve issued tokenized funds in earlier initiatives, highlighted how programmable digital cash may enhance fund issuance, cut back operational friction, and attain broader investor bases.
ANZ’s participation, together with its A$DC stablecoin and function in FX conversion, additional illustrates how conventional banks are integrating digital belongings into cross-border finance.
The pilot will now enter its subsequent part, with end-to-end transaction testing and efficiency analysis throughout compliance, velocity, and interoperability. The outcomes are anticipated to tell regulatory frameworks and set requirements for future use of CBDCs and stablecoins in international monetary markets.
