Standard Chartered Bank (Hong Kong) Limited (SCBHK) has partnered with Mox Bank Limited, Mastercard and Libeara on a proof-of- concept (POC) exploring the operational and risk management benefits of tokenised deposits to support the settlement of tokenised assets.
Completed under the Fintech Supervisory Sandbox launched by the Hong Kong Monetary Authority (HKMA), the POC is the latest milestone in driving fintech innovation and developing the tokenisation market in Hong Kong.
As the first live test of the Mastercard Multi-Token Network (MTN), the POC used the following test scenario to explore how this could work in the context of carbon credits:
- A Mox client wants to buy a carbon credit to offset his/her personal carbon usage and deposits the funds for this in his/her Mox bank account.
- Mox requests SCBHK to tokenise the desired carbon credit which it does using Libeara, a tokenisation platform incubated by SC Ventures.
- Through the Mastercard MTN, the client’s deposit is also tokenised and an atomic swap2 is initiated between the two tokenised instruments.
- The result is a transparent, real-time transaction between SCBHK and Mox, with the end client receiving access to a tokenised version of carbon credit. This can be held in a digital wallet, or in this scenario, used to offset his/her carbon footprint.
Mary Huen, Chief Executive Officer, Hong Kong, Standard Chartered, said:
“The tokenisation of real-world assets and the potential use of different forms of tokenised currency is integral to the future of the financial industry. SCBHK is keen to stay at the forefront of tokenisation and drive fintech development in Hong Kong. Under the guidance of the HKMA, we are proud to pioneer this project with our virtual bank Mox, incubated venture Libeara, and longtime partner Mastercard, with the objective of catalysing the adoption of tokenisation in financial assets. This POC developed around a tokenised version of carbon credit and tokenised deposit is a testament to how SCBHK supports sustainable finance innovation in Hong Kong’s digital economy.”
Helena Chen, Managing Director, Hong Kong & Macau, Mastercard said:
“To unlock the full potential of blockchain technology, continuous collaboration, testing, exploration, and development of innovative use cases are needed to bring real value to businesses and interoperability across the industry. Using the Mastercard MTN, Mastercard is energised to partner with industry-leading players like SCBHK, Mox and Libeara, to develop real-world applications that reshape how consumers and businesses connect, interact, and transact. As the HKMA further develops Hong Kong as a leading digital assets hub, Mastercard is fully committed to supporting its efforts to drive fintech innovation and the advancement of the tokenisation market in Hong Kong.”
