In an exciting development, Visa and ANZ have been selected by the Hong Kong Monetary Authority (HKMA) to participate in Phase 2 of the e-HKD Pilot Programme, further exploring the realm of cross-border payments and interoperability for asset investments through tokenisation. This collaboration seeks to redefine how digital money, particularly e-HKD and tokenised deposits, can revolutionise financial transactions for individuals and corporates.
Exploring Cross-Border Payments and Tokenisation with e-HKD
The collaboration between Visa and ANZ marks a significant step forward in testing new methods for enabling Australia-based corporates to invest in Hong Kong-based funds using digital money. As part of this 12-month Pilot Programme, the focus will be on how tokenisation can simplify and enhance the process of cross-border asset investments, setting the stage for future innovation in the payments industry.
Visa and ANZ’s Role in Phase 2 of the e-HKD Pilot Programme
Visa and ANZ aim to leverage an innovative tokenisation solution to facilitate the issuance of fiat-backed tokens in a sandbox environment. This will enable testing of Delivery vs Payment (DvP) settlement use cases involving e-HKD and tokenised bank deposits, as part of the HKMA’s Project e-HKD+. This initiative is poised to drive near-real-time settlement for interbank transfers and cross-border payments. The programme will provide a seamless and efficient solution for Australia-based corporate investors looking to purchase tokenised fund units offered by ANZ’s asset management partners – Fidelity International and China Asset Management (Hong Kong) Limited (ChinaAMC (HK)).
A Look Back: Visa’s Participation in Phase 1 of the e-HKD Pilot Programme
In the initial phase of HKMA’s e-HKD Pilot Programme in 2023, Visa collaborated with two major banks to explore use cases involving interbank B2B payment flows, including property payments and acquirer-merchant settlements through tokenised bank deposits. This previous experience underscores Visa’s ongoing commitment to enhancing payment systems through innovative technology.
Paulina Leong, General Manager of Visa Hong Kong and Macau, expressed: “Enabling secure payments across borders is central to what we do at Visa. We are committed to working with partners to simplify the process for both businesses and consumers at every step. Our work in Phase 2 of the Pilot Programme aims to drive innovations that could enhance the efficiency and transparency of cross-border payments. From remittance and commercial payment to procurement and trade settlement, we are harnessing cutting-edge technologies like blockchain and tokenisation to strengthen our payments infrastructure and pave the way for a more seamless, secure and inclusive financial future.”
ANZ Banking Services Lead, Nigel Dobson, shared his excitement:
“We are pleased to have been selected for the HKMA’s e-HKD Pilot Programme Phase 2 and look forward to demonstrating how our existing network, data and technology capabilities can support our multinational and institutional customers moving goods and capital across the region. We welcome the opportunity to collaborate on this pilot. We see significant potential to improve efficiency for funds management clients through our emerging Digital Assets capabilities such as A$DC.”
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Pioneering Digital Asset Management with Fidelity International and ChinaAMC (HK)
Fidelity International and ChinaAMC (HK), renowned for their asset management expertise, have joined Visa and ANZ in this pilot programme, aiming to expand opportunities for cross-border distribution through tokenisation.
Emma Pecenicic, Head of Digital Propositions and Partnerships, Asia Pacific ex-Japan at Fidelity International, stated:
“Exploring the link between tokenised currencies and tokenised funds is primordial in an interconnected digital assets ecosystem. With this pilot, Fidelity International will be expanding opportunities for cross-border distribution thanks to tokenisation of funds and tokenised money, including HKD and AUD. Fidelity International is thrilled to partner with Visa and ANZ for HKMA’s Phase 2 e-HKD Pilot Programme, as we stand at the forefront to innovate in our offerings and how we support everchanging clients’ needs.”
Thomas Zhu, Head of Digital Assets and Family Office Business at China Asset Management (Hong Kong), added:
“ChinaAMC (HK) is honoured to have been selected for Phase 2 of the e-HKD Pilot Programme. Building upon the initial successes achieved by the HKMA in Phase 1, which demonstrated the versatile applications of e-HKD, we look forward to working closely with the HKMA and esteemed partners to explore more use cases of e-HKD, and tokenised funds.”
About Visa
Visa (NYSE: V) is a global leader in digital payments, facilitating transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. Committed to connecting the world through a secure, convenient, and innovative payments network, Visa aims to uplift individuals, businesses, and economies everywhere.
