Hong Kong plans stablecoin trials for tokenized government debt

Nov 02, 2026

Hong Kong has expanded its tokenized settlement infrastructure to support transactions around the clock, with the city’s monetary regulator preparing to include regulated stablecoins in government debt trading trials.

According to the Hong Kong Monetary Authority, the latest upgrade allows banks and their clients to settle real-value transactions through EnsembleTX at any time. The announcement came on November 2 during Hong Kong FinTech Week, where officials introduced several initiatives covering digital finance, artificial intelligence and payment services.

Hong Kong expands EnsembleTX to 24/7 settlement

The latest development moves Project Ensemble beyond the settlement hours that previously restricted participating financial institutions.

EnsembleTX allows banks to process tokenized transactions using digital representations of money, supporting payments associated with blockchain-based financial assets.

Previously, participating institutions relied on Hong Kong’s existing settlement infrastructure for certain payments, meaning transactions remained tied to conventional banking hours.

The upgraded system enables real-value settlement throughout the day, including periods when traditional financial markets are closed.

Banks can use the infrastructure to transfer funds between jurisdictions, manage tokenized investment portfolios and handle treasury transactions outside regular business hours.

Tokenized Exchange Fund Bills enter secondary-market trials

The HKMA confirmed that recognized dealers had completed trial trades involving tokenized Exchange Fund Bills.

Exchange Fund Bills are short-term debt instruments issued by the monetary authority as part of Hong Kong’s financial infrastructure.

The latest trials covered secondary-market transactions, allowing participating dealers to examine how tokenized government debt could change hands after issuance.

HSBC RedCoin attracts 50,000 users after launch

Meanwhile, HSBC reported early customer adoption of its recently launched Hong Kong dollar stablecoin, RedCoin.

Speaking during Hong Kong FinTech Week, group CEO Georges Elhedery said the product had attracted 50,000 users since launching on October 23.

The stablecoin became available through PayMe, HSBC’s payment application, which has more than 3.3 million users in Hong Kong.

RedCoin supports transfers between eligible users and payments through participating merchants, with HSBC planning additional banking and investment applications.

HKMA introduces AI security and cross-border payment initiatives

Alongside tokenized settlement, the HKMA announced Project SAGE, an initiative covering the responsible use of AI agents in financial services.

The regulator established an expert group and published a discussion paper seeking industry feedback on the governance of AI systems used by banks.

In cooperation with the Hong Kong University of Science and Technology, the authority launched a post-quantum cryptography toolkit to help banks prepare for future encryption risks.

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