Chainlink Powers Cross-Chain Settlement in HKMA’s e-HKD Phase 2 Program

Chainlink’s CCIP and ACE enabled compliant cross-chain settlement with ANZ, China AMC, and Fidelity International.

HKMA’s e-HKD pilots proved e-HKD and tokenized deposits can deliver efficient, programmable transactions.

HKMA will prioritize wholesale e-HKD use and set token standards to strengthen Hong Kong’s digital finance framework.

The Hong Kong Monetary Authority (HKMA) has released its Phase 2 report on the e-HKD Pilot Programme, highlighting a major development involving Chainlink’s cross-chain infrastructure

The pilot, conducted with ANZ, China Asset Management Company (China AMC), and Fidelity International, tested how tokenized assets can be securely settled across multiple blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Automated Compliance Engine (ACE)

The findings demonstrated that investors based in Australia could acquire tokenized money market fund units from Hong Kong asset managers using e-HKD and tokenized deposits.

Chainlink Enables Secure Institutional Settlement

According to the report, the Chainlink-powered solution addressed three primary challenges in institutional tokenized transactions, data integrity, cross-chain connectivity, and compliance

CCIP connected multiple networks, allowing both value and data to move seamlessly between chains. Meanwhile, ACE facilitated automated compliance by validating on-chain identity proofs against jurisdictional policies

Together, these systems ensured that transactions met institutional standards for interoperability and regulatory oversight. This framework provided participating financial institutions with the infrastructure needed to handle tokenized assets securely and at scale

Notably, it allowed automated verification of regulatory requirements, ensuring that transfers between entities in different jurisdictions adhered to existing financial laws. The collaboration between ANZ, China AMC, and Fidelity International demonstrated how programmable settlement mechanisms could function in a regulated environment.

Wholesale Applications

The e-HKD program, launched in 2017, has explored various retail and wholesale applications of a central bank digital currency. Phase 2 involved 11 industry pilots across three themes, tokenized asset settlement, programmability, and offline payments

The results showed that both e-HKD and tokenized deposits enable efficient and programmable transactions. However, the HKMA noted that the public perceives both instruments similarly, largely due to trust in Hong Kong’s stable banking system

As such, the authority plans to prioritize wholesale applications, including cross-border settlements and trade financing, where e-HKD’s credit-risk-free nature provides greater value. This direction aligns with broader efforts to strengthen the region’s digital finance infrastructure.

Digital Money Standards

Looking ahead, the HKMA intends to establish policy, legal, and technical frameworks to support potential e-HKD adoption by 2026. As part of this effort, it will release common token standards to promote programmability and compatibility within the digital money ecosystem.

HKMA Chief Executive Eddie Yue said the pilot outcomes will guide Hong Kong’s ongoing work on central bank digital currencies and tokenization. He noted that institutional adoption continues to expand as the city prepares for the next phase of digital finance.

The post Chainlink Powers Cross-Chain Settlement in HKMA’s e-HKD Phase 2 Program appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.