The pilot aims to facilitate real-value transactions involving tokenised deposits and digital assets within a controlled environment.

EnsembleTX builds on the outcomes of the Ensemble Sandbox, which since August 2024 has allowed industry participants to test end-to-end use cases for settling digital asset transactions using experimental tokenised deposits.

In the pilot phase, the HKMA, participating banks and other industry participants will focus on enabling faster and more transparent settlement of tokenised transactions, initially in tokenised money market fund transactions and real-time liquidity and treasury management.

The pilot will run through 2026, with interbank settlement of tokenised deposits initially facilitated via the HKD Real Time Gross Settlement (RTGS) system.

The environment will be progressively upgraded to support settlement in tokenised Central Bank Money (CeBM) on a 24/7 basis, supporting the development of Hong Kong’s tokenisation ecosystem.

The HKMA and the Securities and Futures Commission (SFC), a member of the Ensemble Architecture Community, will continue to collaborate on practical applications of tokenisation across asset classes and sectors.

Eddie Yue, Chief Executive of the HKMA, said,

“EnsembleTX marks a pivotal moment in our journey, upgrading from proof-of-concept to a real-value setting. It is where innovation meets implementation, and the concepts and details tested in the Ensemble Sandbox are now applied in real-value transactions, delivering tangible benefits to market participants.”

Julia Leung, Chief Executive Officer of the SFC, said,

“To scale tokenisation of investment products, interoperability is key. A critical step in that direction is today’s initiative announced by the HKMA which will gradually allow interbank settlement of tokenised deposits in real time 24/7.”

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The proposal was discussed on 7 November by a working group of the Financial System Council, an advisory body to the Prime Minister.

The move aims to strengthen measures to ensure system stability following a series of crypto asset thefts.

According to Nikkei, current regulations require crypto exchange operators to implement proper management systems, such as storing customer assets in “cold wallets” that are not connected to the internet.

However, system providers themselves are not currently subject to direct regulation.

Under the proposed framework, only systems from registered providers would be permitted for use.

The reform follows incidents such as the 2024 theft of ¥48.2 billion worth of Bitcoin from DMM Bitcoin.

The company had outsourced transaction management to Tokyo-based software firm Ginco, whose system was infiltrated by a hacker group.

Many council members expressed support for the new approach, noting that outsourcing limits the accountability of exchange operators and highlighting the need to clarify what additional measures should be required.

The FSA will compile a report based on these discussions, with plans to submit a bill to amend the Financial Instruments and Exchange Act to the ordinary Diet session in 2026.

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According to Bloomberg, the government plans to issue digital green bonds denominated in US dollars, Hong Kong dollars, euros, and offshore yuan, people familiar with the matter said.

The sale could be priced as early as Monday (November 10), they added, requesting anonymity as the information is private.

If completed, it would mark Hong Kong’s third digital bond issuance since 2023.

Digital bonds are debt instruments that employ blockchain technology for issuance, trading, and settlement.

They can be issued via distributed ledger technology (DLT) platforms provided by institutions such as HSBC or Goldman Sachs, or on public blockchains like Ethereum, which may offer greater flexibility.

The digital bond market has gained traction in Hong Kong as authorities move to promote tokenised debt issuance, part of a wider regional effort to embrace digital assets amid US President Donald Trump’s pro-crypto policies.

Beyond the government’s sales, at least six digital bonds have been issued by corporations in the city, raising a combined total of about US$1 billion, with four of those offerings taking place this year.

Recent issuers include state-backed mainland Chinese firms Shenzhen Futian Investment Holdings and Shandong Hi-Speed Group.

The latest Hong Kong government notes will be recorded and cleared using HSBC’s DLT platform.

S&P has assigned the proposed securities an AA+ rating, said Rain Yin, a director at the firm.

While such instruments involve certain novel risks, “those are mitigated by a plan that requires, ultimately, shifting the notes to the traditional systems in case of disruption,” he said.

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The move, led by KB, Shinhan, Hana, and Woori Financial Groups, comes as domestic stablecoin transactions have already surpassed 60 trillion won (US$41.15 billion), despite the market not yet being fully legalised.

According to The Korea Times, financial regulators plan to submit a bill regulating stablecoins to the National Assembly by the end of 2025.

While discussions are still ongoing, banks, the flagship subsidiaries of the holding groups, are viewed as potential primary issuers of stablecoins pegged to the Korean won, either independently or through joint consortia with related institutions.

“Under these circumstances, alliances with big tech firms are considered essential, since it would take banks considerable time to develop the necessary technology on their own,”

an industry official said.

“Tech giants, on the other hand, already have strong platform ecosystems and are best positioned to secure practical use cases once stablecoins are issued.”

Other affiliates within the financial groups, including credit card, insurance, securities, and asset management units, are also expected to prepare for stablecoin-related services, such as managing reserves and risks, and linking existing payment and remittance systems with digital coins.

KB Financial Group, Shinhan Financial Group, and Hana Financial Group have already been collaborating with Naver on joint product launches and other initiatives.

Each is reportedly exploring the possibility of expanding into three-way partnerships with Naver and Dunamu, the operator of Korea’s largest cryptocurrency exchange, Upbit, following merger and acquisition discussions between the two companies.

Woori Financial Group, meanwhile, is deepening its collaboration with Samsung Electronics by leveraging its long-standing main banking relationship with Woori Bank.

The partnership involves Samsung Wallet, available on Galaxy smartphones, with Woori Bank serving as the exclusive operator of Samsung Wallet Money and Points.

“While companies like Naver and Kakao are expected to take leading roles in the crypto market by partnering with financial firms, Samsung Electronics also has the capability and operational capacity to issue and manage coins,”

another industry official said.

Financial groups are also expanding their crypto-focused teams and continuing in-house testing and verification.

KB Kookmin Bank has become the country’s first commercial bank to file 17 trademarks combining its brand name, KB, with “KRW”, intended to serve as a future ticker code for a won-backed stablecoin.

Shinhan Financial Group has been conducting pilot experiments to test how stablecoins could be used before legalisation, including through its in-house developed delivery app.

The group is also exploring ways to expand global usage of a won-backed stablecoin through its partnerships with Japan’s SBJ Bank and Shinhan Vietnam Bank.

Hana Financial Group has announced plans to establish a digital asset task force under the direct supervision of Chairman Ham Young-joo.

The task force will consolidate group-wide capabilities in response to the institutionalisation and expansion of the digital asset market.

Woori Financial Group has additionally acquired a 5% stake in digital asset custody firm BDACS.

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Following the Hong Kong Monetary Authority’s (HKMA) launch of its “Fintech 2030” vision, Bill Winters, Group Chief Executive of Standard Chartered, spoke at a panel titled “Sustaining Excellence: Hong Kong’s Role in the Future of International Financial Centre”, highlighting the city’s strengths as a global financial hub.

Senior leaders from the bank also led seminars on topics including tokenisation, Web3 development, open banking, and generative AI.

Mary Huen, CEO for Hong Kong and Greater China & North Asia at Standard Chartered, said,

“The future of banking lies in leveraging fintech to deliver services that meet the needs of a hyper-connected world. With digital assets being a key and lasting component, Standard Chartered is committed to addressing clients’ evolving needs and driving growth through diverse solutions.”

The bank plans to launch digital asset custody services for Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalisation, in January 2026.

These services will complement its existing offerings in Luxembourg and the UAE (via the Dubai International Financial Centre), according to FF News.

Standard Chartered also participates in several HKMA-led initiatives aimed at advancing Hong Kong’s digital asset ecosystem, including Project Ensemble, Project mBridge, the e-HKD Pilot Programme, the GenA.I. Sandbox, and the Supervisory Incubator for Distributed Ledger Technology.

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The collaboration aims to combine both firms’ expertise and resources to drive innovation, expand market growth, and develop tokenised real-world asset opportunities across the Asia-Pacific region.

Both companies bring established credibility in the global crypto ecosystem, a strong commitment to regulatory compliance, and a shared objective of broadening institutional and retail engagement in digital assets.

Recognising the growing opportunity to connect traditional finance with digital assets and unlock institutional capital for tokenisation, HashKey and Kraken will explore collaboration in several key areas.

The partnership will focus on developing institutional-grade on-chain products across Western and Asian markets, supporting ecosystem growth through developer engagement and regulatory dialogue, and conducting joint marketing initiatives to raise awareness of tokenised assets as part of a diversified investment portfolio.

“This strategic partnership opens the door to significant opportunities in digital finance,”

said Dr Xiao Feng, Executive Director, Chairman, and CEO of HashKey Group.

“By aligning Kraken’s institutional capabilities with HashKey’s infrastructure and regulatory expertise in multiple jurisdictions, we’re setting the stage for more robust cross-border collaboration in this evolving space.”

Arjun Sethi, Co-CEO of Kraken, added:

“The tokenisation of financial products represents a major evolution in market infrastructure. Our collaboration with HashKey reflects our shared interest in accelerating institutional participation globally, particularly in markets where clear regulatory frameworks and strong infrastructure are emerging.”

Over time, the partnership is expected to facilitate smoother capital flows between major financial regions and support the development of interoperable infrastructure for digital finance.

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The expansion marks a key step in Reap’s global growth strategy amid rising market confidence and regulatory clarity surrounding stablecoin adoption.

Since developing a full platform offering in 2021, combining cards, payments, treasury, and expense management, the company has grown processing volumes eightfold by the end of 2023.

In 2025, Reap reached profitability and projects a sixfold increase in volumes in 2024.

Its clients include Animoca Brands, Trust Wallet, CoinMarketCap, and Amber Group.

Reap selected Hong Kong as its global base, citing the city’s multicurrency liquidity, regulatory transparency, and international financial connectivity.

“Hong Kong remains core to our global operations and long-term strategy,”

said Daren Guo, Co-Founder of Reap.

“The city’s financial infrastructure is uniquely built for interoperability between traditional and digital asset ecosystems, providing a strong foundation for real-world innovation. Together with the recent advancements in Hong Kong’s stablecoin and digital assets regulatory frameworks, this has unlocked tremendous potential for us to deliver practical use cases in business payments, cross-border settlements, and treasury optimisation.”

Reap’s main product, Reap Direct, integrates fiat and stablecoin infrastructure, offering corporate cards, cross-border payments, and expense management with built-in controls and reporting tools.

The company plans to expand its treasury management capabilities in 2026 to support multi-entity operations and capital efficiency.

The firm’s Card Issuance platform enables white-labelled credit card programmes through an API-based system, while its Payment API provides access to global payment networks, enabling automated cross-border payouts and currency conversions.

AI plays a central role in Reap’s operations, allowing teams to build and refine products rapidly.

The company is also developing AI-powered expense management tools that automate receipt matching, anomaly detection, bookkeeping, and compliance workflows, supported by human oversight.

Reap plans to use its Hong Kong base as a hub for expansion across Asia, Africa, and Latin America, targeting regions with growing demand for cross-border financial infrastructure.

Reap’s expansion has been supported by Invest Hong Kong (InvestHK) and Cyberport.

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The fund uses Franklin Templeton’s proprietary blockchain-recordkeeping system, aiming to provide transparency, security, and efficiency.

Its objective is to generate income through high-quality, short-term US government securities while preserving capital and maintaining liquidity.

This is the first Luxembourg-registered tokenised UCITS money market fund issued natively on blockchain and represents the first end-to-end tokenised solution from an asset manager in the market, integrating issuance, distribution, and servicing.

Tariq Ahmad, Head of APAC at Franklin Templeton, said:

“We are excited to introduce our first tokenised money market fund in Hong Kong for professional investors. This launch reflects our ongoing commitment to delivering innovative investment solutions… Looking ahead, we aim to offer a retail-approved tokenised fund, subject to SFC approval.”

Franklin Templeton has participated in the Hong Kong Monetary Authority’s Project Ensemble since 2024.

In collaboration with HSBC and OSL, the firm tested a use case in which gBENJI, the fund’s on-chain token, delivers yield to investors, demonstrating how tokenised deposits could influence investment flows.

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Speaking on a panel with Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, and Fred Hu, Founder, Chairman and CEO of Primavera Capital Group, at the 10th annual Hong Kong Fintech Week on 3 November, Jing highlighted Hong Kong’s combination of policy innovation, commercial use cases, and cross-sector collaboration as a foundation for its global leadership.

Ant Group first entered Hong Kong when Chinese consumers and travellers began making cross-border payments online and offline via Alipay.

Today, the city remains a key hub for Ant Group and its affiliates, including Ant Digital Technologies, Ant International, and OceanBase.

“AI and tokenisation are the two of the most critical forces driving the evolution of financial services,”

said Jing.

“Hong Kong regulators are leading the global experiment in both areas through visionary and prudent policy mechanisms.”

“Financial services are data-rich and language-heavy, relying on precise communication of abstract and complex products. Nevertheless, the pace of change is faster and faster. In the mid-term, we will be able to see the rise of full AI financial managers supported by a comprehensive AI agent ecosystem,”

he added.

Jing also noted the potential of blockchain-based tokenisation technology for secure, real-time global settlement, improving trade efficiency.

“The trend for tokenisation in fintech is not for speculation, but for regulated institutions to work within the policy framework to improve real efficiency and transparency in value exchange,”

he said.

Ant Digital Technologies is participating in the Hong Kong Monetary Authority’s (HKMA) GenAI Sandbox to support banks’ adoption of AI agents and enhance risk management and anti-fraud capabilities.

In early 2025, AntDT launched several initiatives from its Hong Kong headquarters, including a joint AI and Web3 lab with Hong Kong Polytechnic University and opening its four core technologies to local industry partners.

It also completed a pilot Real World Asset project under HKMA’s Project Ensemble for China’s new energy sector.

Ant International has used its Whale blockchain platform for global liquidity management pilots with Standard Chartered and HSBC, enabling real-time cross-border, cross-currency settlements, and supported HSBC’s first global tokenised deposits solution for corporate clients.

Through Alipay+, the global wallet gateway service, AI payment and growth agents are being rolled out to 4.5 million active users and businesses in Hong Kong via AlipayHK, as well as partner wallets across Southeast Asia.

In October, Hong Kong launched the GoGlobal Task Force to support Chinese enterprises in expanding internationally.

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One circular allows Platform Operators to combine their orders with those of affiliated overseas virtual asset trading platforms in a shared order book, marking the first step under Pillar A (Access) of the ASPIRe roadmap to attract global platforms, order flows and liquidity providers.

Cross-platform order matching and execution is expected to improve market liquidity and pricing for Hong Kong investors, with safeguards in place to mitigate associated risks.

The SFC will next consider whether licensed brokers can direct client orders to regulated overseas liquidity pools within the same group.

The second circular permits Platform Operators to offer trading in virtual assets without a 12-month track record for professional investors, and for Hong Kong Monetary Authority-licensed stablecoins.

It also allows distribution of tokenised securities and digital asset-related investment products, supporting Pillar P (Products) of the roadmap.

Associated entities of Platform Operators may provide custody services for virtual assets or tokenised securities not traded on their platforms.

“Making steady strides in market liquidity and business offerings is crucial to sustaining the growth momentum of Hong Kong’s digital asset ecosystem,”

said Julia Leung, the SFC’s Chief Executive Officer.

“Today, we take a significant step to connect with global liquidity, underscoring our commitment to striking a right balance in fostering market innovation and vitality while upholding high standards for investor protection and market integrity.”

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