Standard Chartered Bank in Hong Kong has successfully completed a proof-of-concept (PoC) project in collaboration with Mastercard, Mox Bank, and the government bond platform Libeara to explore the benefits of tokenised deposits for settling tokenised carbon credits.
The pilot initiative, conducted within the fintech supervisory sandbox facilitated by the Hong Kong Monetary Authority (HKMA), aimed to assess the operational and risk management advantages of tokenisation in supporting the settlement of tokenised carbon credits. Libeara, incubated by Standard Chartered’s venture arm SC Ventures, provided the tokenisation platform for the project.
During the PoC, Libeara leveraged Mastercard’s multi-token network (MTN) to tokenise the deposit submitted by Mox Bank, enabling an atomic swap for the transaction. This process allowed for a transparent and real-time transaction between Standard Chartered and Mox, ultimately resulting in the tokenised carbon credit successfully landing in the digital wallet of the Mox client.
StanChart’s involvement
Standard Chartered’s involvement in digital asset technology extends beyond this PoC, with the bank participating in various industry pilots, including Project mBridge, Project Ensemble, and the HKMA’s e-HKD pilot programme. These initiatives explore areas such as wholesale cross-border payments, interbank settlement using tokenised money through wholesale CBDCs, and programmable payments, tokenised asset settlement, and offline payments.
Helena Chen, Managing Director of Hong Kong and Macau at Mastercard, underscored the importance of continuous collaboration and exploration in tokenisation-based innovation to deliver tangible value to businesses and foster interoperability across the industry.
Standard Chartered’s successful PoC adds to a growing trend of tokenisation-based initiatives within the financial sector. Recent developments include Deutsche Bank’s support of the Monetary Authority of Singapore’s (MAS) Project Guardian and the Bank for International Settlements (BIS) inviting private sector participants to join its Project Agorá. These efforts collectively signify a broader industry shift towards embracing tokenisation and its transformative potential in financial markets.
