HKMA Expands Ensemble Project With Brazil And Thailand Collaborations

According to Odaily, the Hong Kong Monetary Authority (HKMA) is advancing its tokenization-focused Ensemble project by establishing new collaborations. The Ensemble project is now linked with the Central Bank of Brazil (CBB) and the Bank of Thailand (BOT) through their respective Drex and San pilot projects. The Central Bank of Brazil announced the second phase of its Drex CBDC pilot program in September and began accepting applications in mid-October. Tokenization is a key agenda item for further testing in the Drex project. Cross-border Payment versus Payment (PvP) and Delivery versus Payment (DvP) trade finance and carbon credit settlement use cases will be tested between Hong Kong and Brazil. The HKMA noted that the Drex project currently involves over 70 participants. PvP is a currency transaction settlement method, while DvP is a securities settlement method. The HKMA will also collaborate with the BOT to test PvP and DvP settlements. Trade payments and carbon credits will be focal points in the collaboration with BOT, aiming to develop proof-of-concept models.