EnsembleTX, the tokenized deposit pilot run by the Hong Kong Monetary Authority (HKMA), has extended the interbank settlement channel from using RTGS to adding tokenized central bank money that is available 24/7. Given tokenized deposits represent the liability of separate banks, in order to support multiple banks, every token payment has to be mirrored by an interbank payment. It is this leg that is now available in tokenized form, and no longer limited to RTGS operating hours.
At the same time, the HKMA has extended the number of participating banks from seven to 12 and other “pioneer” users have grown from 13 to 20 (list below). The primary use cases have been corporate treasury payments using tokenized deposits, and also to invest in tokenized money market funds (MMFs). Just last week Hong Kong launched regulated trading of tokenized MMFs via one of the local crypto exchanges. That means that corporates can move money into or out of tokenized funds without waiting for subscription and redemption windows.
Other central banks enabling tokenized central bank money or wholesale CBDC include the Swiss National Bank as well Europe’s Pontes, although the Pontes cash tokens are at the minimal viable product phase.
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