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HKMA Puts e-HKD on a Wholesale Track After Phase II Pilot

Officials see the biggest payoff in credit-risk-free settlement for large transactions.

Overview

  • The authority completed the second pilot phase and will prioritize institutional uses over everyday retail payments.
  • Financial institutions have tested the digital currency for interbank cross-border settlement and securities transactions.
  • The HKMA set no launch date for wholesale use, saying deployment depends on technology, emerging use cases and user attitudes.
  • Trials indicated e-HKD and tokenized deposits can enable programmable, cost-effective transactions, and the HKMA plans common tokenization standards with policy, legal and technical preparations targeted for mid-2026.
  • Phase II comprised 11 projects with banks and technology firms, including a Bank of China Hong Kong voucher test with about 500 participants, and the regulator aims to recruit more large institutions for future pilots.