- The HKMA’s newest e-HKD report reveals insights from 11 experimental pilots, amongst them a Chainlink-powered cross-chain initiative.
- Chainlink’s CCIP is getting used on this pilot to bridge transactions between completely different blockchain networks securely.
Hong Kong’s central banking authority (HKMA) is continuous its exploration of a digital model of the digital Hong Kong greenback known as e-HKD. The HKMA first launched the e-HKD pilot in 2023 to discover how a central financial institution digital forex (CBDC) might work in follow.
In September 2024, the undertaking expanded into Part 2, renamed e-HKD+, to check extra superior eventualities involving tokenized belongings, programmability, and interoperability. Simply yesterday, the Hong Kong Financial Authority launched a report saying the completion of the e-HKD Pilot Program and outlining the long run course of e-HKD.
Amongst a number of pilot consortia, 11 in complete, one group contains Visa, ANZ, ChinaAMC (HK), and Constancy Worldwide, which is concentrated on cross-border settlement of tokenized belongings between Australia and Hong Kong.
On this use case, the aim is to permit Australia-based buyers to buy items of a Hong Kong-based tokenized cash market fund (MMF) utilizing both e-HKD or tokenized deposits, with near-real-time settlement, eradicating the friction of conventional cross-border settlement.
Chainlink’s Function: CCIP & Compliance
Chainlink’s superior, notably its Cross-Chain Interoperability Protocol (CCIP), performs a vital function on this pilot by enabling safe, regulated transactions throughout completely different blockchain networks.
In a submit on X, Chainlink defined,
By unifying these capabilities underneath a single commonplace, Chainlink allows institutional-grade tokenized asset transactions end-to-end at scale, unlocking the following technology of regulated tokenized finance.
Some particular functionalities Chainlink contributes to cross-chain messaging and settlement. This enables worth and information to maneuver between permissioned networks like non-public banking techniques and public blockchains corresponding to Ethereum.
It additionally helps implement automated compliance by integrating KYC and AML checks instantly into on-chain processes, guaranteeing all token actions adhere to regulatory requirements.
Beforehand, we highlighted that CCIP allows atomic settlement, or Supply-versus-Cost (DvP), that means that the alternate of e-HKD or stablecoins and the supply of tokenized belongings occur concurrently, lowering counterparty danger and guaranteeing transactions are accomplished effectively.
In follow, the pilot related ANZ’s non-public chain infrastructure (dubbed “DASChain”) to a public testnet (Ethereum Sepolia) through CCIP, permitting an Australian investor to swap an A$-pegged stablecoin (A$DC) for e-HKD after which make investments it in a tokenized MMF.
Visa’s Tokenized Asset Platform (VTAP) serves as a key middleman within the pilot, offering APIs that permit establishments to mint, burn, and switch tokens throughout each permissioned and public blockchain networks. With the marketplace for tokenized funds projected to succeed in US$2 trillion by 2030, insights from this pilot play a job in shaping the frameworks of digital finance.
Past the e-HKD initiative, Chainlink has collaborated with different establishments like SWIFT, DTCC, Euroclear, UBS, and the U.S. Division of Commerce to broaden its affect within the tokenization of conventional monetary techniques (TradFi).
Just lately, Chainlink additionally partnered with Balcony to combine its Chainlink Runtime Setting (CRE) into Balcony’s Keystone platform. As a part of their partnership, Balcony will deliver greater than $240 billion value of actual property belongings onto the blockchain.
Chainlink’s native token, LINK, has seen short-term volatility, just lately slipping 3% to $17.70. Nonetheless, the community presently secures over $62.39 billion in complete worth, with Aave V3 accounting for 62.53% of that quantity.
