Hong Kong‘s central bank is using the launch of the city’s first tokenized fund to build the infrastructure for a future central bank digital currency (CBDC).
The HKMA is developing a tokenized-deposit settlement framework that could eventually incorporate a digital Hong Kong dollar for interbank payments.
This vision was outlined as Franklin Templeton debuted its tokenized money-market fund, the first initiative under the HKMA’s new Fintech 2030 strategy.
By testing these systems in its Project Ensemble sandbox with major players like Franklin Templeton and HSBC, the HKMA is creating a controlled environment to develop the technical and regulatory foundations for a more digitized financial system, with a CBDC as a potential end goal.
