Hong Kong launches a pilot program for encryption deposits with real-value transactions.

Hong Kong has officially launched the testing phase of the Ensemble project, marking an important step in testing real value transactions using encrypted deposits and digital assets. This move further affirms the city's determination to become a hub for the global cryptocurrency industry.

According to the announcement from the Hong Kong Monetary Authority (HKMA) – the de facto central bank of the Special Administrative Region – this trial phase has transitioned the Ensemble project from a sandbox testing environment to actual payment operations, providing real value to participants. The HKMA considers this a significant turning point in the development roadmap of the cryptocurrency sector in Hong Kong.

Earlier, in August 2024, the HKMA launched a sandbox testing environment for the Ensemble project, aimed at integrating encryption technology into the traditional banking system through the e-HKD currency. This sandbox has facilitated banks and industry partners to comprehensively test the digital asset payment process using k deposits.

The new testing phase is expected to last until 2026, focusing first on encrypted money market fund transactions, as well as real-time liquidity and treasury management.

Within the framework of the program, initial interbank payment activities will be supported through the Real-Time Gross Settlement system using HKD. According to HKMA's plans, this environment will be gradually upgraded to support 24/7 payments using central bank money in the form of encryption.

Eddie Yue, the CEO of HKMA, shared: “This is the intersection of innovation and practical implementation. The ideas and solutions that have been tested in the Sandbox Ensemble are now applied to real-value transactions, bringing clear benefits to the market.”

Ms. Julia Leung, Director General of the Securities and Futures Commission, emphasized: “To scale up the encryption of investment products, the key factor is interoperability. Today's initiative by HKMA is an important step forward, gradually allowing real-time, 24/7 interbank payments using encrypted deposits.”

The experimental phase in Hong Kong is taking place against the backdrop of major financial centers in Asia intensifying their research and application of cryptocurrency deposits and on-chain payment infrastructure. Last week, the Monetary Authority of Singapore announced that it will test MAS bills in encryption, paid with central bank digital currency, with detailed information to be published next year.

At the same time, DBS Singapore and Kinexys of J.P. Morgan also announced that they are developing an interoperability framework to support the transfer of encrypted deposits between different blockchain networks, contributing to the development of the digital asset sector in the region.

Mr. Teacher