Hong Kong Monetary Authority Announces Introduction of Wholesale CBDC and Stablecoin Digital Asset Plans

Hong Kong Monetary Authority Accelerates Revamp of Digital Assets and Payment Infrastructure

The Hong Kong Monetary Authority (HKMA) is accelerating its efforts to revamp digital assets and payment infrastructure. The HKMA and the Securities and Futures Commission (SFC) have rolled out new core initiatives aimed at enhancing interbank settlement and market infrastructure.

As part of Project EnsembleTX, the HKMA has decided to introduce a wholesale central bank digital currency (wCBDC) for interbank settlements by the end of 2026. This next-generation digital currency is expected to serve as a foundation for 24-hour settlement of tokenized deposit transactions between financial institutions.

Previous pilot experiments utilized Hong Kong's traditional Real-Time Gross Settlement (RTGS) system, which had the physical limitation of only operating during business hours on weekdays. This time constraint posed significant challenges for interbank balance settlements and customer agency payment operations. However, the introduction of a wholesale CBDC tailored for transactions between financial institutions is expected to enable seamless continuous settlements that are not bound by time or day.

Furthermore, the application of this wCBDC will not be limited to interbank remittances. It is also planned to be adopted as the settlement infrastructure for off-hours derivative transactions established on the Hong Kong Stock Exchange (HKEX), with transaction tests using real funds scheduled for 2026. This will allow for real-time and secure settlements for transactions conducted outside regular trading hours.

Complete On-Chain Payment Infrastructure and New Strategy from SFC

The HKMA is also advancing a fundamental modernization of the payment system, planning to revamp its bond settlement platform, the Central Moneymarkets Unit (CMU), into a blockchain-based system that operates 24/7.

According to Eddie Yue, the Chief Executive of the HKMA, the new platform will accommodate digital Hong Kong dollars and CBDCs, and verification is underway regarding the settlement feasibility of tokenized deposits and regulation-compliant stablecoins.

On the other hand, the SFC has announced a new strategy following Hong Kong's first five-year plan and the 2026 policy address. The SFC aims to strengthen collaboration between mainland China and international markets and is working on developing a regulatory framework that spans from short-term to medium- and long-term. In particular, it plans to focus on comprehensive regulatory development for investment products targeting Real World Assets (RWAs), including tokenized gold, in the long term.

Additionally, to enhance market safety, the SFC has stated it will utilize its proprietary market surveillance tool, CrypTech, to detect suspicious transactions, strengthen anti-money laundering measures, and gradually implement an AI monitoring system.

Commercialization of Stablecoins and Expansion of Products

The utilization of stablecoins in Hong Kong is also gaining momentum, with the HKMA granting its first issuance license in April 2026, led by Anchorpoint and HSBC. The Hong Kong dollar-pegged stablecoin "HKDAP" issued by Anchorpoint has already begun operations, with Standard Chartered Bank as the first issuing bank, and plans are in place for its application in the settlement of tokenized Money Market Funds (MMFs).

Moreover, Gregory Yu, head of the market division at HKEX, has revealed plans to list gold futures denominated in renminbi in early 2027. This is based on a central clearing system for gold that state-owned enterprises have begun trial operations, serving as an important step to enhance the depth of the offshore renminbi-denominated precious metals and commodities market.

In this way, the implementation of wholesale CBDCs, the on-chain transformation of payment systems, and the development of legal frameworks and infrastructure surrounding stablecoins and tokenized assets are progressing in unison, further solidifying Hong Kong's position as an international hub for digital finance.

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