tl;dr
Visa and Chainlink have successfully completed a cross-border blockchain transaction using central bank digital currency (CBDC) and stablecoins as part of the Hong Kong Monetary Authority’s e-HKD Pilot Programme. The trial involved partners ANZ, ChinaAMC, and Fidelity International, and demonstrate...
Visa and Chainlink have successfully completed a cross-border blockchain transaction using central bank digital currency (CBDC) and stablecoins as part of the Hong Kong Monetary Authority’s (HKMA) e-HKD Pilot Programme. This pilot involved partners ANZ, ChinaAMC, and Fidelity International, demonstrating how an Australian investor could swap an AUD-backed stablecoin for e-HKD to purchase tokenized funds in Hong Kong with near-instant settlement.
The trial utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to connect ANZ’s private blockchain with Ethereum’s public testnet, enabling seamless digital money creation, transfer, and on-chain identity verification. The pilot tested programmable money use in cross-border investments, reducing intermediaries, wait times, and increasing transparency, effectively eliminating traditional delays and risks associated with cross-border transactions.
Visa’s Tokenized Asset Platform (VTAP) powered the digital money flow while Chainlink CCIP coordinated smart contracts for payment-versus-payment (PvP) and delivery-versus-payment (DvP) transactions. The pilot also evaluated regulatory-compatible token standards including ERC-20 and ERC-3643, laying the groundwork for adoption in regulated environments.
Currently, fund subscriptions take two to three days to settle; however, blockchain technology demonstrated in this pilot could cut settlement times to mere seconds, operating continuously including weekends and holidays. This breakthrough signals a major step toward scalable digital finance, particularly as tokenized asset markets are projected to surpass $2 trillion by 2030.
The HKMA’s initiative aims to modernize capital markets with digital infrastructure supporting tokenized bank deposits and programmable payments across public and permissioned blockchains. Traditional financial institutions like ANZ are integrating digital assets and stablecoins into cross-border finance services, including foreign exchange conversions and tokenized fund issuance.
Building on this success, the pilot’s next phase will focus on end-to-end transaction testing, assessing compliance, speed, and interoperability. The outcomes are expected to shape future regulatory frameworks and set industry standards for global use of CBDCs and stablecoins, marking a pivotal evolution in cross-border investments and digital asset trading.