- Chainlink enables atomic settlement for Hong Kong CBDC and Australian stablecoin pilot.
- Hong Kong’s e-HKD pilot links permissioned and public blockchains via Chainlink’s CCIP.
- Visa, ANZ, Fidelity collaborate on cross-border stablecoin tests in Hong Kong’s CBDC trial.
Hong Kong’s initiative for a central bank digital currency (CBDC) has progressed with the introduction of a cross-border pilot project. The Hong Kong Monetary Authority (HKMA) is collaborating with Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to evaluate secure transactions between the digital Hong Kong dollar (e-HKD) and a stablecoin pegged to the Australian dollar.
This study, part of the e-HKD+ Pilot Program, unites international financial leaders such as Visa, the Australia and New Zealand Banking Group (ANZ), ChinaAMC, and Fidelity International. With the CCIP the e-HKD pilot utilises Chainlink to facilitate transactions across permissioned and public blockchains.
The project illustrates how an Australian investor can use a stablecoin pegged to the Australian dollar to purchase an asset tokenized in Hong Kong, with the final assets denominated in e-HKD. Visa’s report on the study confirms that the pilot explores the settlement process for these cross-border transactions making use of both the private DASchain and the public Ethereum Sepolia testnet.
Blockchain Interoperability Powers CBDC and Stablecoin Transactions
The pilot demonstrates Chainlink’s ability to connect different blockchain environments, allowing instant and secure settlement. In the test, the protocol allowed simultaneous transfer, known as atomic settlement, between ANZ’s A$DC stablecoin and Hong Kong’s e-HKD. This method lowers the risk of either party failing to deliver, which is a key concern in international payments.
The study assessed two common token standards: ERC-20 for the e-HKD and ERC-3643 for tokenized deposits. These features include those to support regulatory requirements, like identity verification, which is included in the latter. These elements aim to ensure that cross-border digital asset transfer is conducted securely and transparently.
Chainlink’s CCIP delivered the messaging framework for the pilot, enabling data and value transfers across blockchains without conventional asset bridging. This innovation solves the challenges that financial institutions have in optimizing the movement of assets between private, controlled networks and public blockchain environments.
CBDC and Stablecoin Use Cases Set to Influence Global Finance
The HKMA began the second phase of its CBDC pilot in September 2024. Eleven corporate groups are exploring different use cases for the e-HKD, with final findings expected by late 2025. The project’s backers say tokenized real-world assets and stablecoins could boost global liquidity and transparency. Visa and industry analysts believe tokenized assets could reach a $10 trillion market size by 2030, while stablecoins may see a $3.7 trillion market by then.
These advancements also provided operational benefits and new opportunities, according to Emma Pecenicic of Fidelity International. According to Richard Schroder from ANZ, the pilot is designed to make cross-chain transfers seamless.
Additionally, Chainlink’s decentralized oracle network, which secures over $21 trillion in transaction value across more than 50 blockchains, remains a critical component of this cross-border digital asset exchange.
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