Chainlink Boosts Cross-Border CBDC-Stablecoin Swaps in Hong Kong Pilot

Chainlink Empowers e-HKD+ Phase 2 with Cross-Chain Tools

Chainlink is now officially powering CBDC-stablecoin interoperability in Hong Kong’s e-HKD+ Phase 2 Pilot Program, using its Cross-Chain Interoperability Protocol (CCIP) to facilitate secure and efficient currency swaps. The pilot involves the exchange of Hong Kong’s CBDC (e-HKD) and a tokenized Australian dollar stablecoin, bringing together state-issued digital currencies and tokenized bank deposits under one programmable infrastructure.

According to Chainlink’s X post, the protocol’s role will be to automate cross-border payments, enabling real-time data validation and eliminating the need for costly intermediaries. This comes as the Hong Kong Monetary Authority (HKMA) continues to oversee the issuance and reserve management of e-HKD, while ANZ manages the tokenized AUD deposits on the other end.

Three Interoperability Models Considered

Before settling on Chainlink’s CCIP, participants in the pilot evaluated three models for cross-chain interoperability. The first involved Hash Time-Locked Contracts (HTLCs), a conditional approach allowing transfers to be secured under a hash lock and time constraint. While functional, HTLCs introduce latency and complexity across blockchains.

The second option saw digital asset issuers minting and burning tokens across multiple chains. While this model offered simplicity, it required manual involvement, lacked on-chain transparency, and failed to leverage smart contract automation—key features needed for a scalable infrastructure.

Ultimately, the third choice—Chainlink CCIP—was selected, as it combines programmability, security, and efficiency with decentralized verification. Analysts noted this was the most future-proof solution for building a robust cross-border digital payment rail.

Institutional Backing and Regulatory Interest

The pilot is not happening in a vacuum. Major institutions like Visa and Fidelity are backing the e-HKD+ initiative, signaling growing institutional interest in programmable money and tokenized finance. While adoption is still at a testing phase, regulators are closely watching how these technologies align with security, AML/CFT standards, and financial stability.

Still, industry experts believe these early pilot programs will lay the groundwork for broader CBDC and stablecoin adoption, particularly in high-value cross-border use cases.

Hong Kong Moves to Regulate Stablecoin Issuers

The push for infrastructure comes as Hong Kong’s Legislative Council passed a stablecoin regulation bill in May, aimed at creating a framework for fiat-backed stablecoin issuers. The bill has been gazetted but not yet enforced, with the HKMA confirming that implementation is expected later this year.

Meanwhile, the authority is still seeking public feedback on AML/CFT rules for stablecoins. These measures are seen as essential to ensure stablecoin operations don’t create new risks within the financial system.

CITIC Securities, one of China’s largest investment firms, recently commented that stablecoins have the potential to “enable real-world asset tokenization” and are a critical part of expanding tokenized ecosystems beyond the mainland.

Their remarks followed a string of tokenization projects led by Ant Digital, including its collaboration with Longshine Technology and GSBN to tokenize shipping documents like electronic bills of lading (eBLs).