- The Hong Kong Monetary Authority (HKMA) has announced new collaborations.
- The partnerships will test cross-border tokenization use cases.
- The development came as experts estimate the global tokenization market to reach $10 trillion.
The Hong Kong Monetary Authority (HKMA) has announced collaborations with the central banks of Brazil and Thailand to explore cross-border tokenization experiments under multiple programs.
The development comes as the crypto industry progressively matures to integrate with existing financial plumbing, with 21.co estimating the global market value for tokenized assets to top $10 trillion in the bull case scenario and $3.5 trillion in the bear case by 2030.
Hong Kong Bolsters Tokenization Initiatives
In a press release on October 28, the HMKA said its partnership with the Banco Central do Brasil (BCB) will integrate the two institutions’ experimental central bank digital currency (CBDC) infrastructures to test cross-border payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlement use cases in trade finance and carbon credits.
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The CBDC infrastructures include HKMAโs Ensemble Sandbox, launched in August to test four areas, including supply chain finance, and Brazilโs Drex pilot program, developed in collaboration with over 70 companies to support the development of tokenized assets in the country.
At the same time, the HKMA Ensemble Sandbox has collaborated with the Bank of Thailandโs (BOT) Project San to explore PvP and DvP tokenization use cases in payments and carbon credits.
โA key aspect of this collaboration will be a proof of concept development, exploring the interoperability of new distributed ledger technology integrated financial market infrastructures (DLT FMIs). In the proof of concept development, the HKMA and the BOT will test a link between DLT FMIs under Project Ensemble and the BOTโs Project San.โ HKMA said.
The BOTโs Project San launched in June to build and test a prototype for Thailandโs tokenization ecosystem, which includes a wholesale settlement engine, interoperability mechanism, and EVM-compatible ledgers to support tokenized private money and assets.
Read about the Thailand SECโs crypto regulatory sandbox:
Thailand SEC Rolls Out Crypto Regulatory Sandbox
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