HONG KONG—The Hong Kong Monetary Authority (HKMA) has unveiled a project designed to evaluate the use of tokenization across different financial sectors according to a new report.
Unlike retail CBDCs designed for public transactions, wholesale CBDCs are designed for use by financial institutions.
“These digital currencies are critical for interbank payments and high-value transactions, playing a key role in the infrastructure of the financial system,” CryptoDNES reported.
Initially, the HKMA’s initiative will target four main areas: fixed income and investment funds, liquidity management, green and sustainable finance, and trade supply chain finance, the report stated.
Major financial institutions participating in the initiative include Bank of China, HSBC, Hang Seng Bank and Standard Chartered Bank.