The Hong Kong Monetary Authority (HKMA) today announced the launch of the Project Ensemble Sandbox (the Sandbox) and introduced four main themes of tokenization use cases.
Ant Digital Technologies has participated in building the Tokenized Asset Platform within the Sandbox and contributed to two main themes: "Green and sustainable finance" and "Trade and supply chain finance".
Project Ensemble is the HKMA's new wholesale central bank digital currency (wCBDC) project to support the development of the tokenization market in Hong Kong. The project was officially launched in March 2024. Ant Digital Technologies is among the first batch of participants in the private sector and the founding member of the Ensemble Architecture Community. The Sandbox is at the core of Project Ensemble, aiming to further research and test tokenization use cases that include, among others, settlement of tokenized monies and tokenized real-world assets.
Under Project Ensemble, Ant Digital Technologies has participated in building the Tokenised Asset Platform within the Sandbox. This platform offers asset tokenization services and facilitates Delivery-versus-Payment (DvP) transactions for Traditional Assets (TA) and Tokenized Deposits (TD). It supports transactions between accounts within the same bank as well as cross-bank transactions.
The use cases supported by Ant Digital technologies are：
1. Green and sustainable finance
Leveraging blockchain and Internet of Things (IoT) technologies from Ant Digital Technologies, the real-time operational status of physical assets can be recorded and securely uploaded to the blockchain. This transparency enhances asset valuation and enables multiple stakeholders to assess value and manage risk collaboratively, which will ultimately improve financing efficiency and accessibility.
Shenzhen-listed Longshine Technology Group, a new energy company, has digitized over 9,000 of its charging piles as Real World Assets (RWAs) with the support of Ant Digital Technologies and Project Ensemble. Subsequently, the company has successfully secured its first cross-border financing for RWAs in Hong Kong, propelling the rapid growth of its renewable energy business.
2. Trade and supply chain finance
Through Ant Digital Technologies’ tokenised asset platform and the electronic Bill of Lading (eBL), an important trade document of title, issued over Global Shipping Business Network (GSBN), HSBC, Hang Seng Bank, and Bank of China (Hong Kong) facilitated the use of tokenized deposits to settle the transfer of an eBL. This transaction was conducted via the Sandbox.
Zhao Wenbiao, the Chief Executive Officer of Ant Digital Technologies, joined the launch event. "We are honored to be among the first batch of participants of the Project Ensemble. We are grateful to the Hong Kong Monetary Authority and the Securities and Futures Commission for their innovative approach and vision, which have enabled us to explore various innovative projects. Looking ahead, we hope to provide support to more RWA projects, especially in the new energy sector, both in China and globally. We also welcome partners to explore more use cases in the real economy with us,” said Zhao.
Ant Digital Technologies is a technology subsidiary of Ant Group. Its blockchain business originated in 2015, and it has continued to lead the industry. In 2023, Ant Digital Technologies officially launched its Web3 products and services brand, ZAN. In the same year, the revenue from its international business operations increased by 300%.
Ant International Joins the Hong Kong Monetary Authority’s Project Ensemble Sandbox
Ant International today announced its participation in the Hong Kong Monetary Authority’s (HKMA) Project Ensemble Sandbox, focusing on “Liquidity Management”, one of its four main themes. Launched in March this year, Project Ensemble is the HKMA’s wholesale central bank digital currency (wCBDC) project aimed at fostering the development of tokenization in Hong Kong.
The Project Ensemble Sandbox enables companies to research and test tokenization use cases including the settlement of tokenized monies and tokenized real-world assets, amongst others. Ant International will leverage its Whale platform to participate in the Sandbox and develop an innovative use case with its partners. Ant International’s Whale platform is a next-generation treasury management solution that utilizes blockchain technology, advanced encryption and artificial intelligence to improve the efficiency and transparency of fund movements.
Ant International will collaborate with partners Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Hong Kong) and The Hongkong and Shanghai Banking Corporation Limited (HSBC) to develop a global liquidity management solution that allows banks to connect to and exchange their tokens, by leveraging its Whale platform. This will allow cross-border payments to be conducted around the clock in real time.
This partnership with the HKMA marks a significant step forward for Ant International in fostering public-private collaboration to drive innovations in tokenization.
Kelvin Li, Head of Platform Tech at Ant International, said: “As an international financial centre and the home of a vibrant financial industry, Hong Kong is a key focus area for Ant International in our journey to serve merchants around the globe. We are proud to collaborate with the Hong Kong Monetary Authority on Project Ensemble to make an impact on the future of Hong Kong’s fintech industry. We look forward to combining our industry experience and innovative solutions with the HKMA’s vision as we pioneer and develop the use of emerging technologies such as tokenization.”