Mastercard and Standard Chartered Pioneer Tokenization in Hong Kong

Mastercard, in collaboration with Standard Chartered Bank (Hong Kong), Mox Bank, and Libeara, has achieved a significant milestone in the fintech landscape of Hong Kong. The successful completion of a proof-of-concept (POC) pilot under the regulatory sandbox of the Hong Kong Monetary Authority (HKMA) marks a pivotal moment in advancing tokenization in the region.

The pilot focused on tokenizing deposits and carbon credits, aiming to streamline the settlement process of tokenized assets and foster the development of the tokenization market in Hong Kong. This initiative, conducted within the HKMA’s Fintech Supervisory Sandbox, underscores the commitment of industry leaders to drive innovation and propel the digital economy forward.

Under the pilot, a Mox client initiated a transaction to purchase a tokenized carbon credit, utilizing the Mastercard Multi-Token Network (MTN). Standard Chartered Bank (Hong Kong) leveraged Libeara’s platform to tokenize both the carbon credit and the client’s deposit. The seamless execution of an atomic swap between these tokenized instruments demonstrates the efficiency and potential of blockchain technology in facilitating real-world transactions.

Mary Huen, CEO of Standard Chartered Hong Kong, emphasized the importance of tokenization in shaping the future of the financial industry. She highlighted the significance of sustainable finance and the role of tokenization in fostering the growth of the digital economy in Hong Kong.

Helena Chen, Managing Director for Hong Kong & Macau at Mastercard, echoed this sentiment, stressing the importance of collaboration in unlocking the full potential of blockchain technology. She emphasized Mastercard’s commitment to supporting the HKMA’s efforts in driving fintech innovation and advancing the tokenization market in Hong Kong.

The success of this pilot exemplifies the power of collaboration and collective expertise in driving innovative digital finance solutions. Standard Chartered Bank (Hong Kong), Mox Bank, Mastercard, and Libeara leveraged their extensive global networks to propel tokenization forward in Hong Kong.

Standard Chartered Bank (Hong Kong) continues to engage in key projects such as Project mBridge, Project Ensemble, and the HKMA’s e-HKD Pilot Programme, further enhancing the development of digital assets in the region. Libeara’s expansion into Hong Kong further supports local tokenization projects, paving the way for future innovation in the space.

Mastercard remains committed to facilitating the understanding and adoption of blockchain technology, collaborating with partners worldwide to implement technologies that enable safe and efficient value exchanges. As the fintech landscape continues to evolve, initiatives like these play a crucial role in shaping the future of finance in Hong Kong and beyond.

Image credit