Hong Kong has expanded its tokenized settlement infrastructure to support transactions around the clock, with the city’s monetary regulator preparing to include regulated stablecoins in government debt trading trials.
Summary
- Hong Kong has upgraded EnsembleTX to support round-the-clock settlement of real-value tokenized transactions.
- The HKMA completed trial trades involving tokenized Exchange Fund Bills in the secondary market.
- Regulated stablecoins will be included in upcoming settlement trials involving government debt.
- HSBC’s RedCoin stablecoin has attracted 50,000 users since launching through PayMe on October 23.
- The HKMA introduced new initiatives covering AI governance, quantum-resistant security and cross-border payments.
According to the Hong Kong Monetary Authority, the latest upgrade allows banks and their clients to settle real-value transactions through EnsembleTX at any time. The announcement came on November 2 during Hong Kong FinTech Week, where officials introduced several initiatives covering digital finance, artificial intelligence and payment services.
The regulator confirmed that dealers had completed secondary-market trials involving tokenized Exchange Fund Bills, with stablecoins scheduled to join subsequent testing.
Hong Kong expands EnsembleTX to 24/7 settlement
The latest development moves Project Ensemble beyond the settlement hours that previously restricted participating financial institutions.
EnsembleTX allows banks to process tokenized transactions using digital representations of money, supporting payments associated with blockchain-based financial assets.
Previously, participating institutions relied on Hong Kong’s existing settlement infrastructure for certain payments, meaning transactions remained tied to conventional banking hours.
The upgraded system enables real-value settlement throughout the day, including periods when traditional financial markets are closed.
Banks can use the infrastructure to transfer funds between jurisdictions, manage tokenized investment portfolios and handle treasury transactions outside regular business hours.
As crypto.news previously reported, Hong Kong planned to introduce continuous settlement using tokenized central bank money by the end of 2026.
The plan included support for tokenized commercial bank deposits and additional applications involving wholesale central bank digital currency.
Project Ensemble originally launched in March 2024 to examine how tokenized assets and different forms of digital money could operate within the financial system.
A sandbox introduced in August 2024 allowed participating banks to connect their tokenized deposit platforms and test transactions before real-value operations began.
In November 2025, the HKMA launched EnsembleTX as the project’s pilot phase, allowing participating financial institutions to process actual transactions.
Tokenized Exchange Fund Bills enter secondary-market trials
The HKMA confirmed that recognized dealers had completed trial trades involving tokenized Exchange Fund Bills.
Exchange Fund Bills are short-term debt instruments issued by the monetary authority as part of Hong Kong’s financial infrastructure.
The latest trials covered secondary-market transactions, allowing participating dealers to examine how tokenized government debt could change hands after issuance.
Officials said the testing would support more efficient secondary-market trading and repurchase transactions, commonly known as repo trades.
Under a repo arrangement, financial institutions temporarily exchange securities for cash, agreeing to reverse the transaction under specified terms.
Tokenized instruments can record ownership transfers through blockchain systems, while settlement infrastructure handles the corresponding movement of money.
The regulator intends to expand the trials to include regulated stablecoins, although it has not announced a specific start date.
Earlier plans for tokenized assets included allowing regulated stablecoins to settle tokenized money-market funds and supporting additional digital investment products.
Hong Kong has separately explored wholesale digital currency transactions for after-hours derivatives trading through cooperation between the HKMA and Hong Kong Exchanges and Clearing.
HSBC RedCoin attracts 50,000 users after launch
Meanwhile, HSBC reported early customer adoption of its recently launched Hong Kong dollar stablecoin, RedCoin.
Speaking during Hong Kong FinTech Week, group CEO Georges Elhedery said the product had attracted 50,000 users since launching on October 23.
The stablecoin became available through PayMe, HSBC’s payment application, which has more than 3.3 million users in Hong Kong.
RedCoin supports transfers between eligible users and payments through participating merchants, with HSBC planning additional banking and investment applications.
The bank has said its longer-term target is to reach millions of stablecoin users.
However, the reported 50,000 users do not establish how many customers make recurring transactions or the total value of RedCoin payments.
Hong Kong currently has two licensed stablecoin issuers, HSBC and Anchorpoint Financial.
Earlier coverage of licensed stablecoin issuers explained that HSBC began its retail rollout through PayMe, while Anchorpoint initially restricted distribution to selected institutional participants.
Both companies received stablecoin issuer licenses in April 2026 under Hong Kong’s regulatory framework.
HKMA introduces AI security and cross-border payment initiatives
Alongside tokenized settlement, the HKMA announced Project SAGE, an initiative covering the responsible use of AI agents in financial services.
The regulator established an expert group and published a discussion paper seeking industry feedback on the governance of AI systems used by banks.
In cooperation with the Hong Kong University of Science and Technology, the authority launched a post-quantum cryptography toolkit to help banks prepare for future encryption risks.
The initiative provides guidance for financial institutions assessing how quantum computing could affect existing security arrangements.
The HKMA introduced tConnect Launchpad with Cyberport to connect financial institutions, technology companies and digital asset businesses developing tokenization applications.
Separately, Hong Kong’s Faster Payment System is scheduled to connect with UnionPay International by the end of 2026.
The planned connection will gradually allow users to make QR-code payments across a network covering more than 100 million merchants in Hong Kong, mainland China and over 40 overseas markets.
