HKMA Launches Project Ensemble Sandbox to Explore Tokenisation in Financial Sector

HKMA launches Project Ensemble Sandbox to accelerate adoption of tokenisation

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA) hosted today (August 28) the launch ceremony for Project Ensemble Sandbox (the Sandbox) and introduced four main themes of asset tokenisation use cases for the initial round of experimentation (see Annex), marking a significant step forward in the advancement of tokenisation in real-world application within the financial sector.

The HKMA has completed the building and setup of the Sandbox (Note), which is designed to facilitate interbank settlement using experimental tokenised money, focusing on transactions involving tokenised assets. Participating banks from the Project Ensemble Architecture Community (the Community) have connected their tokenised deposit platforms to the Sandbox, paving the way to conduct experiments for both interbank payment-versus-payment and delivery-versus-payment settlement.

After thorough consideration of industry interest, prevailing market trends and potential innovative impact, the initial round of experimentation will cover tokenisation of both traditional financial assets and real-world assets, focusing on four main themes: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance. With a view to strengthening Hong Kong's position as an international financial centre with an innovative spirit to create new economic sectors, the HKMA will continue to actively engage with the industry to gauge interest in tokenisation, develop new themes and identify further use cases for tokenisation.

To support the sustainable development of the tokenised asset market in Hong Kong, an appropriate regulatory framework is essential. The Securities and Futures Commission (SFC), a key member of the Community, plays a crucial role in helping to develop a regulatory framework that will support the sustainable growth of the tokenised asset market in Hong Kong. In addition, the SFC will be co-leading with the HKMA on tokenisation initiatives for the asset management industry to promote wider adoption and ultimately enhancing Hong Kong's position as a premier asset and wealth management centre.

On the international front, the HKMA will also explore collaborating with the Bank for International Settlements Innovation Hub Hong Kong Centre across one or more themes, and engage the central bank digital currency (CBDC) Expert Group to leverage their subject matter expertise to further advance the Sandbox.

The Chief Executive of the HKMA, Mr Eddie Yue,said, "The introduction of the Project Ensemble Sandbox to test tokenisation use cases marks a significant step forward for the HKMA and the industry to explore the application of tokenisation in real-life business scenarios. Since the launch of Project Ensemble in March, we have been encouraged by the strong interest from the industry in pioneering innovative solutions to redefine the digital finance landscape. The HKMA looks forward to collaborating with the SFC, other central banking institutions, academia, and all relevant industry participants to further drive innovation and progress in the Hong Kong tokenisation market."

The Chief Executive Officer of the SFC, Ms Julia Leung,said "The Sandbox launch today is a clear example of how innovation and regulation can go hand in hand to blaze a new path for our financial markets. As two major architects of Hong Kong's financial markets, the SFC and the HKMA share the same vision and dedication to future-proofing the city's financial system through innovative market infrastructure."

Note: Project Ensemble seeks to explore innovative financial market infrastructure (FMI) to facilitate seamless interbank settlement of tokenised money through wholesale central bank digital currency (wCBDC). Through the Sandbox, the HKMA seeks to examine technical interoperability among tokenised assets, tokenised deposits and wCBDC, while enabling industry participants to conduct end-to-end testing of tokenised asset transactions in practical business scenarios.

HKMA launches Project Ensemble Sandbox to accelerate adoption of tokenisation Source: HKSAR Government Press Releases

HKMA launches Project Ensemble Sandbox to accelerate adoption of tokenisation Source: HKSAR Government Press Releases

HKMA launches Project Ensemble Sandbox to accelerate adoption of tokenisation Source: HKSAR Government Press Releases

HKMA launches Project Ensemble Sandbox to accelerate adoption of tokenisation Source: HKSAR Government Press Releases

CHP reminds public on precautions against heat stroke during very hot weather

The Centre for Health Protection (CHP) of the Department of Health (DH) today (September 14) reminded members of the public, particularly those undertaking outdoor activities, to take heed of necessary measures against heat stroke and sunburn in very hot weather.

"The public should carry and drink plenty of water to prevent dehydration while engaging in outdoor activities," a spokesman for the CHP said.

"Those engaged in strenuous outdoor activities should avoid beverages containing caffeine, such as coffee and tea, as well as alcohol, as they speed up water loss through the urinary system," the spokesman explained.

"Infants and children, the elderly, pregnant women, those with chronic illnesses such as heart disease or high blood pressure, outdoor/manual workers, and individuals who are overweight are more vulnerable to heat stroke. They should pay special attention," the spokesman added.

The public should adopt the following precautions:

Wear loose and light-coloured clothing to reduce heat absorption and facilitate sweat evaporation and heat dissipation;

Avoid vigorous exercise and prolonged activities like hiking or trekking as heat, sweating and exhaustion can place additional demands on the physique;

Perform outdoor activities in the morning or the late afternoon, if possible;

For indoor activities, open all windows, use a fan or use air-conditioning to maintain good ventilation;

Do not stay inside a parked vehicle; and

Reschedule work to cooler times of the day if feasible. If working in a hot environment is inevitable, introduce shade in the workplace where practicable. Start work slowly and pick up the pace gradually. Move to a cool area for rest at regular intervals to allow the body to recuperate.

​The public should also note the latest and the forecast Ultraviolet (UV) Index released by the Hong Kong Observatory (HKO). When the UV Index is high (6 or above):

Minimise direct exposure of the skin and the eyes to sunlight;

Wear long-sleeved and loose-fitting clothes;

Wear a wide-brimmed hat or use an umbrella;

Seek a shaded area or put on UV-blocking sunglasses;

Apply a broad-spectrum sunscreen lotion with a minimum sun protection factor (SPF) of 15, preferably higher. Reapply every two hours if you stay out in the sun, and after swimming, sweating or towelling off; and

While using DEET-containing insect repellents for personal protection against mosquito-borne diseases, apply sunscreen first, then insect repellent.

​If symptoms develop, such as dizziness, headache, nausea, shortness of breath or confusion, rest and seek help immediately, and seek medical advice as soon as possible.

​The public may obtain more information from the DH's Health Education Infoline (2833 0111),heat strokepage andUV radiationpage; the HKO's Dial-a-Weather (1878 200),latestweather report and forecast,UV Indexand weather information forhiking and mountaineering; andpress releasesof the Labour Departmenton precautions against heat stroke for outdoor workers and their employers when the Very Hot Weather Warning is in force.

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