Mastercard, Standard Chartered Pilot Tokenized Deposit Settlements in Hong Kong

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Standard Chartered Bank (Hong Kong) Limited (SCBHK), in collaboration with Mox Bank Limited (Mox), Mastercard, and Libeara, has successfully conducted a proof-of-concept (POC) pilot to explore the operational and risk management advantages of tokenized deposits for settling tokenized assets in Hong Kong. 

Completed within the Hong Kong Monetary Authority’s (HKMA) Fintech Supervisory Sandbox, this initiative marks a significant step in driving fintech innovation and developing the tokenization market in the region.

Mastercard Multi-Token Network

The POC, conducted under the supervision of the HKMA, utilized the Mastercard Multi-Token Network (MTN) to test the viability of tokenized deposits for settling carbon credits

In this scenario, a Mox client deposited funds into their account to purchase a carbon credit to offset their personal carbon usage. SCBHK then tokenized the carbon credit using Libeara, an incubated tokenization platform by SC Ventures. 

Transparent, Real-Time Transaction

Through the MTN, an atomic swap was initiated between the tokenized deposit and the tokenized carbon credit, facilitating a transparent, real-time transaction between SCBHK and Mox. The end result was the client receiving access to a tokenized version of their carbon credit, which could be held in a digital wallet or used to offset their carbon footprint.

Mary Huen, CEO of Standard Chartered Hong Kong, emphasized the importance of tokenization in the financial industry’s future and SCBHK’s commitment to driving fintech development in the region. This collaboration, supported by the HKMA, aims to catalyze the adoption of tokenization in financial assets, with a focus on sustainable finance innovation.

Continuous Collaboration and Innovation

Helena Chen, Managing Director of Mastercard Hong Kong & Macau, highlighted the significance of continuous collaboration and innovation to unlock the full potential of blockchain technology. 

Mastercard’s partnership with SCBHK, Mox, and Libeara demonstrates its commitment to developing real-world applications that reshape how consumers and businesses connect and transact in the digital economy.

Mastercard and Commitment to Blockchain

Utilizing its global network and collaborative approach, SCBHK is actively contributing to the development of digital assets in Hong Kong through various projects, including Project mBridge and Project Ensemble. The bank’s strategic partnerships and initiatives aim to explore the possibilities of digital asset-related technologies and contribute to Hong Kong’s evolution as a digital asset hub.

Mastercard’s wider commitment to blockchain technology involves working with partners globally to deploy innovative solutions that address market needs and enhance efficiency and trust in transactions.

Overall, this POC represents a significant milestone in the adoption of tokenization in Hong Kong’s financial sector, with potential implications for the broader adoption of digital assets in the region’s economy.

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