Standard Chartered Bank (Hong Kong) Limited (SCBHK) has partnered with Mox Bank Limited, Mastercard and Libeara on a proof-of-concept (POC) exploring the operational and risk management benefits of token deposits for support settlement of tokenized assets;
Completed under the Fintech Supervisory Sandbox launched by the Hong Kong Monetary Authority (HKMA), the POC is the latest milestone in promoting fintech innovation and developing the tokenisation market in Hong Kong.
As the first live test of the Mastercard Multi-Token Network (MTN), the POC used the following test scenario to explore how it might work in the context of carbon credits:
- A Mox customer wants to buy a carbon credit to offset their personal carbon usage and deposits the money for it into his/her Mox bank account.
- Mox asks SCBHK to tokenize the desired carbon credit, which it does using Libeara, a tokenization platform incubated by SC Ventures.
- Through the MTN Mastercard, the customer’s deposit is also tokenized and an individual exchange2 is initiated between the two tokenized media.
- The result is a transparent, real-time transaction between SCBHK and Mox, with the end customer receiving access to a tokenized version of the carbon credit. This can be held in a digital wallet or in this scenario, used to offset his/her carbon footprint.
Mary Huen, Chief Executive Officer, Hong Kong, Standard Chartered, said:
“The marketing of real-world assets and the potential use of different forms of fiat currencies is an integral part of the future of the financial industry. SCBHK wishes to remain at the forefront of tokenisation and drive fintech development in Hong Kong. Under the guidance of the HKMA, we are proud to spearhead this project with our virtual bank Mox, business incubator Libeara and long-term partner Mastercard, with the aim of adopting tokenisation in financial assets. This POC developed around a tokenized version of carbon credit and token deposit is a testament to how SCBHK supports sustainable financial innovation in Hong Kong’s digital economy.
Helena Chen, Managing Director, Hong Kong & Macau, Mastercard said:
“Unlocking the full potential of blockchain technology requires continued collaboration, testing, exploration and development of innovative use cases to bring real business value and industry-wide interoperability. Using Mastercard MTN, Mastercard is stepping up to partner with leading industry players such as SCBHK, Mox and Libeara to develop real-world applications that are reshaping the way consumers and businesses connect, interact and transact. As the HKMA further develops Hong Kong as a leading digital asset hub, Mastercard is fully committed to supporting its efforts to drive fintech innovation and the advancement of the tokenisation market in Hong Kong.”