At a glance
- The HKMA raised participation to 12 banks from seven and other pioneer users to 20 from 13, according to the report.
- For advisors whose clients hold tokenized money market funds, the practical constraint likely shifts from fund subscription windows to how fast the interbank cash leg clears.
- Hong Kong began regulated trading of tokenized money market funds through a local crypto exchange last week.
EnsembleTX, the Hong Kong Monetary Authority's tokenized deposit pilot, now settles its interbank leg in tokenized central bank money around the clock, beyond RTGS operating hours, Ledger Insights reported on Nov. 2.
The HKMA raised participation to 12 banks from seven and other pioneer users to 20 from 13, according to the report. Tokenized deposits are liabilities of individual banks, so each token payment must be mirrored by an interbank payment. The pilot's main uses are corporate treasury payments in tokenized deposits and investment in tokenized money market funds.
For advisors whose clients hold tokenized money market funds, the practical constraint likely shifts from fund subscription windows to how fast the interbank cash leg clears.
Hong Kong began regulated trading of tokenized money market funds through a local crypto exchange last week. That lets corporates move money into or out of those funds without waiting for subscription and redemption windows, Ledger Insights reported.
Hong Kong has already used tokenized deposits on the settlement side of a debt deal: it priced a $2.6 billion tokenized green bond with tokenized deposits settling the Hong Kong dollar tranche, as Private Wealth Daily previously reported.
Reported by the Tokenization desk from Ledger Insights and Private Wealth Daily archive. Published . Corrections