Standard Chartered pilots carbon credit tokenisation in Hong Kong with Mastercard, Mox Bank and Libeara
Standard Chartered Bank in Hong Kong (SCBHK) has completed a proof-of-concept (PoC) in partnership with Mastercard, Mox Bank and government bond platform Libeara exploring the “operational and risk management benefits of tokenised deposits” to support the settlement of tokenised carbon credits.
Standard Chartered tokenises carbon credits in Hong Kong
The pilot was conducted through the fintech supervisory sandbox hosted by the Hong Kong Monetary Authority (HKMA) and sought to uncover how Mox clients could tokenise carbon credits through the tokenisation platform of Libeara, which was incubated by Standard Chartered’s venture arm, SC Ventures.
Once a request was received, Libeara tapped Mastercard’s multi-token network (MTN) to tokenise the deposit submitted by Mox, which facilitated the atomic swap for the transaction.
The participants claim that the trial delivered a “transparent, real-time transaction between SCBHK and Mox”, with the tokenised carbon credit successfully landing in the digital wallet of the Mox client.
Mary Huen, Standard Chartered’s Hong Kong CEO, says the PoC was focused on “catalysing the adoption of tokenisation in financial assets”, citing the initiative as “integral to the future of the financial industry”.
The bank’s exploration of digital asset technology has seen its participation extend to a number of industry pilots, including Project mBridge’s development of a multi-CBDC common platform for wholesale cross-border payments, the interbank settlement of tokenised money through wholesale CBDCs with Project Ensemble, and the application of programmable payments, tokenised asset settlement and offline payments with the HKMA’s e-HKD pilot programme.
Helena Chen, managing director, Hong Kong and Macau at Mastercard, adds that tokenisation-based innovation depends on the “continuous collaboration, testing, exploration, and development of innovative use cases”, as a means to “bring real value to businesses and interoperability across the industry”.
The number of tokenisation-based initiatives is on the rise across the industry, after Deutsche Bank recently announced its support of the Monetary Authority of Singapore’s (MAS) Project Guardian this week, while the Bank for International Settlements (BIS) simultaneously put of a call for private sector participants to join its Project Agorá.
