In a major step forward for global digital finance, Chainlink and Visa have successfully powered a real-world swap between Hong Kong’s central bank digital currency (CBDC), the e-HKD, and an Australian dollar stablecoin (A$DC). This pilot, part of the Hong Kong Monetary Authority’s (HKMA) e-HKD+ initiative, demonstrates how blockchain can streamline cross-border investments and payments, making them faster, safer, and more transparent .
How Did the Swap Work?
The pilot involved an Australian investor exchanging A$DC for e-HKD using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This protocol connected ANZ’s private blockchain (DASChain) with Ethereum’s public testnet, allowing the investor to use the digital Hong Kong dollar to purchase a tokenized money market fund managed by Hong Kong-based asset managers .
Why Is This Important?
Traditionally, cross-border fund subscriptions can take two to three days to settle, often involving multiple intermediaries and manual processes. With this blockchain-powered solution, settlement can happen in seconds, 24/7—including weekends and holidays—eliminating delays and reducing operational risks .
Key Features of the Pilot
• Programmable Money: The test used smart contracts to automate payment-versus-payment (PvP) and delivery-versus-payment (DvP) flows, ensuring both sides of the transaction are completed simultaneously .
• On-Chain Compliance: Chainlink’s compliance services enabled on-chain identity verification, supporting regulatory requirements and security .
• Token Standards: The pilot tested token issuance using ERC-20 and ERC-3643 standards, evaluating their compatibility with regulatory and security needs .
• Interoperability: Chainlink CCIP acted as the bridge between different blockchains, making it possible to swap assets across networks securely and efficiently .
Who Was Involved?
The pilot was a collaboration between Visa, Chainlink, ANZ, ChinaAMC, and Fidelity International, with oversight from the HKMA. Each party played a role in ensuring the technical, regulatory, and operational aspects of the swap were robust and compliant .
What Does This Mean for the Future?
This successful test signals a future where investors can use CBDCs or stablecoins to directly access international investment opportunities without the friction of traditional banking rails. It also highlights the growing importance of blockchain interoperability and compliance in the next generation of financial infrastructure .
“The simulation shows how investors in Australia could use either a CBDC or stablecoin to directly invest in Hong Kong-based funds, removing intermediaries, reducing wait times, and increasing transparency.”
