Hong Kong launches live pilot for tokenized deposits

Hong Kong has launched a pilot program for tokenized deposits and digital asset settlement, The Block reported. The move follows the Project Ensemble sandbox, which has been running since last August to integrate tokenized deposits into traditional banking using the digital Hong Kong dollar (e-HKD+). The Hong Kong Monetary Authority (HKMA) stated that the new pilot marks a transition from sandbox experiments to a live settlement phase. The pilot is scheduled to operate until 2026 and will initially focus on transactions involving tokenized money market funds (MMFs) and real-time liquidity management.