The Hong Kong Monetary Authority (HKMA) has teamed up with the Bank of Thailand and Banco Central do Brasil to advance cross-border tokenization projects aimed at enhancing financial technology integration.
In press releases issued on October 28, the HKMA announced its collaboration with these central banks to develop use cases for tokenized assets, focusing on areas like trade finance and carbon credits.
Both partnerships will involve creating a proof-of-concept to explore the interoperability of new distributed ledger technology within financial market infrastructures.
“Expanding our partnership to explore cross-border tokenization use cases further underscores this shared vision,” said Howard Lee, deputy chief executive of the HKMA.
In the agreement with the Bank of Thailand, the HKMA will connect its Ensemble Sandbox with the Bank of Thailand’s Project San to test Payment versus Payment (PvP) and Delivery versus Payment (DvP) settlements. These initiatives will encompass trade payments, carbon credits, and other tokenization applications.
Simultaneously, the HKMA’s collaboration with Banco Central do Brasil will link the Ensemble Sandbox with Brazil’s Drex pilot platform, launched earlier in September. This initiative involves over 70 companies exploring themes like trade finance and green finance.
According to the press release, the HKMA and BCB plan to conduct cross-border experiments to connect their central bank digital currency infrastructures, enhancing PvP and DvP settlement processes.
