TLDR:
- HSBC tested e-HKD+ on Ethereum, Arbitrum, Polygon, Linea, and Hyperledger Besu.
- Privacy was ranked the top concern by 90% of Hong Kong residents in HSBC’s survey.
- One-third of respondents said they would use e-HKD for digital asset trading.
- HSBC introduced the first local bank-led on-chain settlement service for e-HKD.
HSBC has completed a new round of testing for digital Hong Kong dollar (e-HKD) transactions across multiple blockchain platforms. The experiments, conducted under the Hong Kong Monetary Authority’s (HKMA) Project e-HKD+, are part of a broader move to explore real-world applications for digital currencies.
As part of this effort, HSBC introduced the first on-chain settlement service led by a local bank. The project combines technical trials with a public survey to gauge interest and shape future design. This latest initiative signals deeper integration of tokenized finance into traditional banking infrastructure.
HSBC Digital Currency Experiments Span Public and Private Blockchains
Under the e-HKD+ initiative, HSBC tested how digital money can be used for settlement and value transfer across distributed ledger technology (DLT). The bank chose a mix of public and private blockchains, including Ethereum, Arbitrum, Linea, Polygon, and Hyperledger Besu.
According to the bank, these trials aimed to examine how tokenized deposits and real-world assets could be supported securely at scale. The research addressed both technical and operational concerns that may arise in a digital currency ecosystem.
Privacy and security were top priorities in these trials.
HSBC explored the use of decentralized identity and privacy-enhancing technologies to safeguard user data during digital transactions. This focus reflects growing demand for secure and transparent solutions in blockchain-based payments.
HSBC, the largest bank in Hong Kong, has conducted e-HKD+ experiments on Arbitrum, Ethereum, Linea, Polygon and Hyperledger Besu to support the development of Hong Kong dollar digital currency, and has launched the first local bank-led on-chain settlement service.…
— Wu Blockchain (@WuBlockchain) July 10, 2025
Public Response Shows Demand for Safety and Privacy
In addition to the technical tests, HSBC conducted a survey involving over 700 respondents in Hong Kong.
The results revealed that privacy ranked as the most important feature for 90 percent of participants. Meanwhile, 65 percent of professional investors were already familiar with the e-HKD concept.
One-third of all respondents said they would be open to using e-HKD for digital asset trading, citing safety as the main reason.
These insights will help shape the next steps for e-HKD development. HSBC plans to use the findings to propose ways digital currencies can be applied in everyday finance while meeting public expectations.
HSBC Broadens Role in Hong Kong’s Digital Finance Roadmap
HSBC continues to play an active role in Hong Kong’s shift toward digital assets.
The bank is part of the e-HKD Industry Forum and participated in the first phase of the pilot program, focusing on retail use cases. HSBC also supports other HKMA-led projects such as mBridge and Project Ensemble.
Recently, it launched a tokenized deposit service for corporate clients, offering a blockchain-based settlement model, the first of its kind led by a Hong Kong bank.
More insights from the e-HKD+ testing are expected to be published later this year.
