HKMA launches sandbox to accelerate tokenisation adoption

The sandbox will facilitate interbank settlement using experimental tokenised money.

The Hong Kong Monetary Authority (HKMA) launched Project Ensemble Sandbox (the Sandbox) as well as the four main themes of asset tokenisation use cases for the initial round of experimentation.

The Sandbox will explore innovative financial market infrastructure (FMI) to facilitate seamless interbank settlement of tokenised money through wholesale central bank digital currency (wCBDC).

The HKMA has completed the building and setup of the Sandbox which will facilitate interbank settlement using experimental tokenised money, focusing on transactions involving tokenised assets.

Participating banks have linked their tokenised deposit platforms to the Sandbox,  enabling experiments for both interbank payment-versus-payment and delivery-versus-payment settlement.

HKMA and the Securities and Futures Commission (SFC) will work closely to develop a regulatory framework that will support the sustainable growth of the tokenised asset market in Hong Kong. 

In addition, the HKMA plans to collaborate with the Bank for International Settlements Innovation Hub Hong Kong Centre and engage the central bank digital currency (CBDC) Expert Group to advance the Sandbox.