Report: The next phase of the Digital Hong Kong Dollar Sandbox will launch end-to-end trading tests for tokenized assets

According to official sources. Huaxia Fund (Hong Kong) Visa、 The Australian and New Zealand Banking Group and Fidelity International have jointly released the interim report of the second phase of the Hong Kong Monetary Authority's (HKMA) Digital Hong Kong Dollar+(e-HKD+) pilot program, titled 'Transforming Global Payments: The Role of tokenized currencies and funds in cross-border transactions'. The report points out that the second phase will explore use cases around three themes: settlement of tokenized assets, programmability, and offline payments. Sandbox participants will test how Australian investors can use digital Hong Kong dollars or tokenized deposits to purchase tokenized fund units from Hong Kong asset management companies. The entire process is divided into two steps: first, Australian investors obtain digital Hong Kong dollars through their ANZ bank; Secondly, use digital Hong Kong dollars to purchase shares of the tokenized Hong Kong money market fund of Huaxia Fund (Hong Kong). These transactions are designed to be close to real-time and synchronized to test the effectiveness of reducing counterparty risk related to settlement. In the next stage of the sandbox, sandbox participants will initiate end-to-end trading tests to delve into how tokenization technology can reduce counterparty risks related to settlement. It is expected that these tests will provide important insights for the further development of the industry in terms of interoperability standards, token standards, token distribution, and the 24/7 availability provided by blockchain technology.