Hong Kong advances tokenization plans with Project Ensemble pilot

According to the HKMA, the initiative will run through 2026. The first phase will allow institutions to use tokenized deposits in tokenized money-market funds and manage liquidity and treasury operations in real time. 

The authority framed the pilot as a shift from the Ensemble Sandbox launched in August 2024, where banks and industry partners tested end-to-end settlement using experimental tokenized deposits. Designs proven in the sandbox are now being applied in production settings, with early use cases focused on real-time liquidity and treasury management. 

HKMA plans upgrades to enable round-the-clock settlement in tokenized central bank money. 13 industry participants will test how tokenized deposits interact with capital markets processes, including issuance, trading, and redemption of tokenized money-market fund shares, while aligning with regulatory supervision. The initiative also aims to connect tokenized deposits with existing banking rails and the e-HKD program. 

In early November, Hong Kong hosted FinTech Week 2025, focusing on AI, digital assets, and tokenization. During the event, the Hong Kong Monetary Authority unveiled its FinTech 2030 roadmap, built around four pillars – “DART”: Data, AI, Resilience, and Tokenization of finance. The HKMA also highlighted the upcoming Project Ensemble pilot, a wholesale CBDC and tokenized finance sandbox, where blockchain-based settlements will use e-HKD, tokenized deposits, and regulated stablecoins for real-value transactions.

HKMA’s recent announcement highlights Chief Executive Eddie Yue’s view of Project Ensemble’s transition as “where innovation meets implementation.” Sandbox-tested ideas are now used in real transactions, bringing real benefits. Julia Leung, CEO of the Securities and Futures Commission, said interoperability is crucial for growing tokenized investment products.

Regional authorities and firms are advancing similar infrastructure. The Monetary Authority of Singapore plans to test tokenized MAS bills settled with a central bank digital currency, with details expected next year.  This regional experimentation is part of a broader global shift toward regulating and standardizing tokenized finance.

As we reported earlier, the U.S. Federal Deposit Insurance Corporation is preparing guidance on how deposit insurance should apply and has clarified that tokenized bank liabilities are still considered deposits under existing law. Policymakers are also examining how smart contracts could speed up insured payouts, while proposals such as the GENIUS Act define who may issue payment stablecoins and how they should be separated from bank deposits.