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Mastercard and Standard Chartered Bank Hong Kong tests tokenised deposits

on May 15, 2024
  • Mastercard and Standard Chartered execute first live test of tokenized deposits in Hong Kong.
  • The collaboration showcases Mastercard's Multi-Token Network's role in revolutionizing transactions.
  • The initiative highlights potential for blockchain to enhance transparency and security in banking.

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Mastercard (NYSE: MA) and Standard Chartered Bank Hong Kong (SCBHK) have successfully completed the first live test of tokenised deposits using blockchain technology within Hong Kong’s fintech sandbox.

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This initiative marks a significant step forward in exploring the potential of blockchain in revolutionising banking transactions and asset management.

Tokenised deposits using Mastercard’s Multi-Token Network

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The successful execution of tokenized deposits highlights the growing synergy between traditional banking institutions and cutting-edge fintech solutions.

Through the Mastercard Multi-Token Network (MTN), the live test transaction involved a Mox Bank client purchasing a carbon credit, which was then tokenized by SCBHK using Libeara, its innovative tokenization platform.

The use of blockchain facilitated an atomic swap between the tokenized deposit and the carbon credit, ultimately delivering the tokenized asset securely to the client’s digital wallet.

This proof of concept not only demonstrates the technical feasibility of tokenized deposits but also underscores the potential for enhancing transaction efficiency, transparency, and security in the financial industry.

Helena Chen, the Managing Director of Mastercard for Hong Kong and Macau, highlights that partnerships with industry leaders like SCBHK and innovative platforms like Libeara pave the way for transformative applications that reshape consumer-business interactions.

Standard Chartered Hong Kong embracing digital assets

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The successful completion of this test aligns with the forward-looking initiatives of the Hong Kong Monetary Authority (HKMA), particularly through projects like Project Ensemble.

Ensemble aims to explore wholesale Central Bank Digital Currencies (CBDCs) and tokenized deposits, signalling Hong Kong’s commitment to embracing blockchain and digital assets in its financial ecosystem.

Standard Chartered Hong Kong’s active participation in Ensemble, as well as in eHKD retail CBDC trials and multi-CBDC cross-border payment projects like mBridge, further underscores the momentum towards digital transformation in finance.

Mary Huen, CEO of Standard Chartered Hong Kong, emphasizes the integral role of tokenization in the future of the financial industry.

Through collaboration with partners like Mox Bank, Libeara, and Mastercard, Standard Chartered Hong Kong aims to catalyze the adoption of tokenization in financial assets under the guidance of HKMA.

This pioneering spirit not only positions Hong Kong as a hub for fintech innovation but also sets the stage for broader adoption of blockchain-based solutions globally.

Crypto Finance & Banking