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Last week we reported that the Hong Kong Monetary Authority (HKMA) launched its Project Ensemble Sandbox. The primary purpose is to trial a wholesale central bank digital currency (wCBDC) as a settlement tool for tokenized deposits. Additionally, various tokenization trials will use tokenized deposits for settlement. Some of the four banks involved in the trials – HSBC, HSBC-owned Hang Seng Bank, Standard Chartered HK and Bank of China HK – ran trials as part of the setup process for the Sandbox. They shared the details.

As previously noted, the tests will also include two high profile asset managers, BlackRock and Franklin Templeton.

HSBC ran three Proofs of Concept (POCs) as part of the Sandbox setup. One for a purchase of digital bonds on the HSBC Orion platform using tokenized deposits recorded on the HSBC ledger. Another was the interbank transfer of tokenized deposits with Hang Seng Bank, using the Ensemble interoperability platform. And the third was the use of tokenized deposits for settlement of electronic bills of lading (eBL) initially issued via the GSBN blockchain and tokenized by Ant Digital. Hang Seng Bank also took part in the eBL tests.

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