HSBC has announced the findings of new research and experiments under its Project e-HKD+, an initiative aimed at examining how digital money could operate within Hong Kong’s financial system. The project, which tested distributed ledger technology (DLT) platforms and surveyed public perceptions, is part of ongoing efforts to support the Hong Kong Monetary Authority (HKMA) in evaluating real-world use cases for an e-HKD.
HSBC’s recent experiments included testing both public DLT platforms such as Ethereum, Polygon, Linea, and Arbitrum, as well as a private DLT system developed using Hyperledger Besu. The bank’s work focused on understanding how digital money could facilitate the settlement of tokenised assets and enhance security and privacy through privacy-enhancing technologies and decentralised identity solutions.
Public Perception and Use Cases
A survey conducted by HSBC with over 700 respondents in Hong Kong revealed that 90% view transaction privacy as essential for the e-HKD. The research also found that 65% of professional investors are familiar with the concept of e-HKD, compared with 42% of the overall respondents.
Approximately one-third of participants said they would consider using e-HKD for digital asset trading, citing perceived safety from its digital structure and official backing.
HSBC noted that these findings will inform further recommendations to the HKMA on implementing digital currencies for daily use, trading, and settlement. The survey results highlight the importance of privacy and trust as central considerations for any future rollout.
Industry Collaboration and Broader Initiatives
HSBC has been an active participant in the HKMA’s e-HKD Pilot Programme, where it explored retail applications for digital money. The bank is also a member of the e-HKD Industry Forum and has supported other HKMA-led initiatives, including Project mBridge, which explores cross-border central bank digital currency (CBDC) payments, and Project Ensemble, focused on tokenised deposits.
Additionally, HSBC recently introduced a tokenised deposit service for corporate clients in Hong Kong. According to the bank, this marks the first blockchain-based settlement service led by a bank in the city, signalling further integration of digital asset infrastructure into traditional banking.
In a statement, Luanne Lim, Chief Executive Officer CEO) of HSBC Hong Kong, said the bank remains focused on secure and accessible technology to advance financial innovation. “At HSBC, we are leveraging our deep financial expertise to pioneer the future of financial innovation. Focusing our efforts on secure, accessible, and transformative technologies, Project e-HKD+ highlights our dedication to digital currencies,” the CEO stated.
