Visa, the payment processor, has successfully completed the Hong Kong Monetary Authority’s central bank digital currency (CBDC) Pilot Programme in collaboration with HSBC and Hang Seng Bank. The program, known as e-HKD, involves the tokenization of deposits, where money deposited with a bank is converted into digital tokens on the bank’s blockchain ledger. Visa’s pilot testing revealed that interbank transfers were settled in near real-time, with tokenized deposits being burned on the sending bank’s ledger and minted on the receiving bank’s ledger. The transactions were settled interbank via a simulated wholesale CBDC layer. Unlike traditional payment systems, Visa’s platform operated 24/7, including weekends and after hours. The tokenized deposits were encrypted, ensuring privacy for participants while allowing visibility on blockchain explorers. Visa is now exploring tokenized asset markets and programmable finance as the next steps. The e-HKD Pilot Programme will move into phase two based on the successful results achieved.

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Information	Details
Geography	Asia
Countries	🇭🇰
Sentiment	positive
Relevance Score	1
People	None
Companies	Hong Kong Monetary Authority, Visa, HSBC, Hang Seng Bank
Currencies	None
Securities	None