HSBC Bank Pilots e-HKD+ Stablecoin Across Various Blockchains – Chinese CBDC Coming?

HSBC, the largest bank in Hong Kong, has successfully completed a series of blockchain experiments under the Hong Kong Monetary Authority’s (HKMA) Project e-HKD+.

These tests were designed to explore the technical and commercial feasibility of issuing a central bank digital currency (CBDC) version of the Hong Kong dollar.

HSBC conducted the experiments across a range of both public and private Distributed Ledger Technology (DLT) environments, including Arbitrum, Ethereum, Linea, and Polygon.

The move reinforces the bank’s commitment to shaping the future of digital money and highlights its role as the first local bank to launch an on-chain settlement service in the region.

The pilot focused on how a digital Hong Kong dollar could function in real-world scenarios. HSBC explored how e-HKD could serve not just as a store of value and a means of transfer, but also as a settlement utility for tokenised assets.

Key areas of investigation included scalability across both public and private blockchains, the role of Privacy Enhancing Technologies (PET), and the use of Decentralised Identity (DID) systems to maintain security and user privacy.

To complement its technical exploration, HSBC surveyed over 700 Hong Kong residents and investors. Findings revealed that 90% of respondents valued privacy in digital currency transactions.

While just 42% of the general public said they were familiar with e-HKD, that figure rose to 65% among professional investors. Notably, one-third of participants expressed willingness to use e-HKD for trading digital assets, citing the perceived safety of a government-backed, blockchain-based currency.

Beyond Project e-HKD+, HSBC said it is playing a leading role in Hong Kong’s broader digital asset initiatives.

The bank is a member of the e-HKD Industry Forum and has supported related programs such as Project mBridge and Project Ensemble. It also helped issue the HKSAR Government’s digital green bonds and recently launched a Tokenised Deposit Service for corporate clients—Hong Kong’s first bank-led blockchain settlement solution.

HSBC executives Luanne Lim and John O’Neill stressed the bank’s dedication to financial innovation and the advancement of secure, scalable digital currencies.

More findings from Project e-HKD+ are expected to be released later this year, potentially laying the groundwork for a larger CBDC rollout in the region.

Hong Kong’s Securities and Futures Commission (SFC) has recently issued another license under the new crypto trading platform regime, granting approval to HKVAX following OSL and HashKey.

Hong Kong's financial regulator has granted its third crypto trading license, with plans to approve more by the end of the year. #HongKong #Cryptohttps://t.co/K4DfrfbbHn

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