On Monday, the Hong Kong Monetary Authority (HKMA) and the Banco Central do Brasil (BCB) announced a collaboration to conduct cross-border tokenisation experiments.
HKMA and BCB Collaborate on Cross-Border Tokenisation Initiatives
The two central banks explained that they will link their experimental central bank digital currency (CBDC) infrastructures, Ensemble Sandbox and Drex pilot platform, to explore payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlement use cases in areas such as trade finance and carbon credits.
The partnership builds on a 2018 agreement between the two organisations to foster financial innovation.
Both central banks have been actively exploring CBDCs and tokenised assets, and the partnership represents a step forward in their international cooperation on digital finance.
The HKMA’s Ensemble Sandbox aims to facilitate experimentation in areas such as fixed income, liquidity management, green finance, and trade finance.
Meanwhile, the BCB’s Drex pilot program is focused on developing a tokenised financial market in Brazil, with a focus on areas like payments, securities, and trade finance.
The bank said the Drex platform is being developed in co-operation with more than 70 companies, bringing together various financial market participants.
By linking the two platforms, the HKMA and BCB aim to explore the potential benefits of cross-border CBDC transactions, such as faster settlement times, reduced costs, and increased transparency.
The Chief Executive of the HKMA, Eddie Yue, said: “Project Ensemble is all about collaboration with industry partners to advance the tokenisation market.”
Governor of the Banco Central do Brasil, Mr Roberto Campos Neto, stated: “The collaboration with the HKMA is an important step in this new phase in the construction of Drex.”
