Euroclear has announced its participation in Project Ensemble, an initiative of the Hong Kong Monetary Authority ( HKMA ) to foster tokenization in the financial sector.

The project, launched in March 2024, brings together leading experts and industry pioneers to collaboratively design, test and implement a robust framework for tokenization in Hong Kong.

As an “architecture community” member, Euroclear will immediately contribute by developing a set of industry standards to support interoperability among central bank money, tokenized money, and tokenized assets.

The Brussels-based post-trade services provider says its collaboration with the HKMA aligns with the group’s Asia and innovation strategies.

It strengthens relationships with industry leaders in the region while driving new opportunities for market expansion.

At the same time, it fosters a more integrated and regulated digital asset ecosystem, supporting the development of innovative products and services that contribute to the growth of the tokenized economy, Euroclear says.

"Hong Kong’s position as an international financial centre is reinforced by its world-class financial market infrastructure, which has established the city as a super-connector between the mainland and the rest of the world,” says Nelson Chow, HKMA’s executive director for financial infrastructure.

“Our long-standing partnership with Euroclear, spanning over 20 years, has significantly enhanced both our infrastructure and connectivity. We are excited to further advance this collaboration as we transition into the era of digitalization and tokenization."

Philippe Laurensy, chief executive officer of Asia-Pacific Euroclear, adds: "Euroclear's participation in Project Ensemble is a testament to our strategic focus on the Asia-Pacific region. By collaborating with key stakeholders in the Hong Kong tokenization market, we are exploring new opportunities for innovation and market growth.

“This initiative will allow us to harness cutting-edge technology to develop solutions that benefit the marketplace by fostering a more interconnected financial ecosystem."