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The Hong Kong Monetary Authority (HKMA) has been networking its tokenization-focused Project&nbsp;Ensemble and has new collaborations to show for it.
Project Ensemble is being linked with the Central Bank of Brazil’s (CBB)&nbsp;Drex pilot project and the Bank of Thailand’s (BOT) Project San.&nbsp;
<h2 id="uniting-tokenization-projects-around-the-world">Uniting tokenization projects around the world</h2>
The CBB announced the second phase of its Drex central bank digital currency (CBDC) pilot program in September and&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/brazil-drex-cbdc-pilot-phase-2" rel="noopener noreferrer nofollow" target="null" text="null" title="null">began accepting applications</a>&nbsp;for it in mid-October. Tokenization is on the agenda for further Drex testing.&nbsp;
Cross-border payment-versus-payment (PvP) and delivery-versus-payment (DvP) trade finance and carbon credit settlement use cases&nbsp;will be tested between Hong Kong and Brazil. The HKMA&nbsp;<a data-ct-non-breakable="null" href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/10/20241028-3/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">noted</a>&nbsp;that the Drex project has more than 70 participants at this time.&nbsp;
The HKMA will also&nbsp;<a data-ct-non-breakable="null" href="https://www.info.gov.hk/gia/general/202410/28/P2024102800199.htm" rel="noopener noreferrer nofollow" target="null" text="null" title="null">test</a>&nbsp;PvP and DvP settlements with the BOT. PvP is a method of monetary transaction settlement, and DvP is a settlement method for securities.
Trade payments and carbon credits will also be the focus of the collaboration with the BOT, with the goal of developing a proof-of-concept.&nbsp;
According to the HKMA, the BOT launched Project San in June. BOT deputy governor of corporate development Alisara Mahasandana said:
<blockquote>
 “This partnership will significantly advance tokenisation efforts […] by offering broader insights into tokenisation, as different technical designs, business requirements, and regulatory frameworks of each jurisdiction will be taken into account."
</blockquote>
Related:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/brazilian-securities-regulator-sandbox-tokenization" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Brazilian securities regulator plans sandbox for tokenization in 2024</a>
<h2 id="hong-kong-is-trailblazing-tokenization">Hong Kong is trailblazing tokenization&nbsp;</h2>
The HKMA&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-project-ensemble-support-tokenization-wcbdc" rel="noopener noreferrer nofollow" target="null" text="null" title="null">launched Project Ensemble</a>&nbsp;in March to develop wholesale CBDC to support tokenization. It convened an architecture committee&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hkma-project-ensemble-asset-tokenization" rel="noopener noreferrer nofollow" target="null" text="null" title="null">to consider the infrastructure</a>&nbsp;for the project that included Bank of China (Hong Kong), Hang Seng Bank, Hong Kong and Shanghai Banking Corporation (HSBC), Standard Chartered Hong Kong, HashKey Group, Ant Digital Technologies and Microsoft Hong Kong.&nbsp;
<figure><img alt="HKMA Project Ensemble partners with Brazil, Thailand for tokenization" src="https://s3.cointelegraph.com/uploads/2024-10/0192d454-0840-74c1-9dad-e7352e518090" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/hkmagovhk/status/1850833751921791140" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://x.com/hkmagovhk/status/1850833751921791140">HKMA</a>
 </figcaption>
</figure>
The HKMA&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/banque-france-hkma-cbdc-tokenization-collaboration" rel="noopener noreferrer nofollow" target="null" text="null" title="null">onboarded the French</a>&nbsp;central bank to the project in June and&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-project-ensemble-asset-tokenization-cbdc" rel="noopener noreferrer nofollow" target="null" text="null" title="null">launched a sandbox</a>&nbsp;in August.
In February, prior to launching Project Ensemble, the HKMA issued guidance for financial institutions&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-hkma-issues-guidance-letters-institutions-tokenization-custody" rel="noopener noreferrer nofollow" target="null" text="null" title="null">to close gaps in tokenization</a>&nbsp;regulation. The Hong Kong&nbsp; Securities and Futures Commission&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-sfc-tokenized-investments-requirements" rel="noopener noreferrer nofollow" target="null" text="null" title="null">issued rules for tokenized</a>&nbsp;securities offerings in November.
Magazine:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/hyped-up-depin-projects-barely-even-use-blockchain-true-or-false/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Most DePIN projects barely even use blockchain: True or false?</a>
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HKMA Project Ensemble partners with Brazil, Thailand for tokenization

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