HSBC has confirmed that it has been testing Ethereum as part of Hong Kong’s official digital currency pilot. Under the Hong Kong Monetary Authority’s (HKMA) Project e-HKD+, HSBC explored how public blockchain platforms, such as Ethereum, can support the city’s plans for a digital Hong Kong Dollar (e-HKD).
The bank ran trials across several blockchain systems, including Ethereum, Arbitrum, Linea, and Polygon. It also tested its private network built on Hyperledger Besu. Through these experiments, HSBC looked at how digital money could move securely across public and private blockchain systems while also protecting privacy and operating at scale.
The bank mainly explored three things:
- How e-HKD can be used to hold and move money on blockchain systems like Ethereum, and whether it can help settle payments for tokenized assets.
- How transactions can be kept private and secure, using technologies such as Privacy Enhancing Tools and Decentralised Identity.
- How e-HKD can work smoothly on both public blockchains like Ethereum and private networks.
Besides these technical trials, HSBC also asked over 700 people in Hong Kong what they thought about e-HKD. The results showed that privacy matters most:
- 90% said privacy is important in e-HKD transactions.
- 65% of professional investors already understand what e-HKD is, compared to 42% of the general public.
- Around one-third respondents said they would be willing to use e-HKD for digital asset trading, mainly because they think it is safer thanks to its official backing.
“As Hong Kong’s largest note-issuing bank, we will continue our efforts in driving financial innovation in Hong Kong and the world,” said Luanne Lim, Chief Executive Officer, Hong Kong, HSBC. “Project e-HKD+ highlights our dedication to digital currencies.”
John O’Neill, Group Head of Digital Assets and Currencies at HSBC, added, “Our experimental work on Project e-HKD+, combined with our survey of public perceptions towards e-HKD, aims to support the work of the HKMA in assessing different options for the real-world use of digital currencies.”
HSBC’s work on Ethereum integration ties into its broader involvement in Hong Kong’s fintech projects, including Project mBridge, Project Ensemble, and its recently launched blockchain-based Tokenized Deposit Service for corporate clients.
Also Read: Bitstamp by Robinhood Lists Ethereum Classic for Global Traders
