Hong Kong's e-HKD+ Pilot Program Advances with Tokenization Exploration

According to Foresight News, a collaborative effort involving Huaxia Fund (Hong Kong), Visa, Australia and New Zealand Banking Group, and Fidelity International has released the interim report for the second phase of the Hong Kong Monetary Authority's (HKMA) e-HKD+ pilot program. This initiative aims to explore how tokenization technology can drive the development of next-generation payment infrastructure, focusing on its role in facilitating transactions while ensuring financial stability and compliance. The next phase will involve sandbox participants conducting end-to-end transaction tests to examine how tokenization can reduce counterparty risk associated with settlements. Zhu Haokang, Head of Digital Asset Management and Family Wealth Management at Huaxia Fund (Hong Kong), stated, "Through the second phase of the e-HKD+ pilot program, we are collaborating with ANZ Bank and Visa to utilize tokenized bank deposits for purchasing tokenized funds issued by Huaxia (Hong Kong). This initiative demonstrates how new digital currencies can enhance the efficiency and transparency of fund unit issuance and circulation. The sandbox is not only a significant milestone in our digital asset strategy but also a crucial step in shaping the future of fund management."