Chainlink Facilitates Real-Time Cross-Border CBDC Transactions in Hong Kong-Australia Pilot

Chainlink has played a pivotal role in advancing cross-border central bank digital currency (CBDC) settlements through its involvement in a pilot program between Hong Kong and Australia. The initiative leverages Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to facilitate secure and real-time exchanges between the e-HKD, Hong Kong’s digital currency, and the A$DC, a stablecoin pegged to the Australian dollar. This collaboration is part of the second phase of the e-HKD pilot, focusing on testing cross-border functionality using blockchain technology.

The project includes key participants such as Visa, ANZ, Fidelity, and ChinaAMC. Visa and ANZ are instrumental in the issuance and management of the A$DC stablecoin, while Fidelity and ChinaAMC act as asset managers. The goal is to create a secure and interoperable network for international transactions involving tokenized funds. Chainlink’s Digital Transfer Agent (DTA) system is also integrated into the project, ensuring regulatory compliance and enabling multichain operations across various blockchain networks.

Chainlink’s role in this pilot extends beyond just facilitating transactions. The company aims to broaden its involvement in CBDC experiments by expanding payment-versus-payment (PvP) workflows across the entire transaction process. This expansion is designed to support continuous on-chain financial activities while maintaining transaction privacy and reducing risks associated with intermediaries. The successful completion of this pilot marks a significant milestone in the development of CBDCs and stablecoins, demonstrating their potential for real-time cross-border transactions.

The pilot program has successfully demonstrated a cross-border blockchain transaction using CBDC and stablecoins. This trial, conducted in collaboration with ANZ, ChinaAMC, and Fidelity International, showcased how an Australian investor could exchange an AUD-backed stablecoin (A$DC) for e-HKD and use it to purchase a tokenized money market fund (MMF) offered by asset managers in Hong Kong. The process achieved near-instant settlement, effectively eliminating the traditional risks associated with delayed cross-border transactions.

Ask Aime: Will Chainlink's role in CBDCs revolutionize cross-border transactions?

Visa’s Tokenized Asset Platform (VTAP) facilitated the creation and movement of digital money, while Chainlink CCIP coordinated smart contracts for payment-versus-payment (PvP) and delivery-versus-payment (DvP) flows. The pilot also incorporated on-chain identity verification through Chainlink’s compliance services and tested token issuance using ERC-20 and ERC-3643 standards to evaluate regulatory compatibility and security features. This simulation highlighted how investors in Australia could directly invest in Hong Kong-based funds using either a CBDC or stablecoin, thereby removing intermediaries, reducing wait times, and enhancing transparency.

Currently, fund subscriptions can take two to three days to settle. With blockchain technology, the entire process could be completed in seconds, around the clock, even on weekends and holidays. This pilot reflects a growing global push to modernize capital markets through digital infrastructure. The e-HKD+ initiative expands on earlier phases to include tokenized bank deposits and programmable payments across both public and permissioned blockchains.

Fidelity and ChinaAMC, who have issued tokenized funds in previous initiatives, highlighted how programmable digital money could improve fund issuance, reduce operational friction, and reach broader investor bases. ANZ’s participation, including its A$DC stablecoin and role in FX conversion, further illustrates how traditional banks are integrating digital assets into cross-border finance. The pilot will now enter its next phase, with end-to-end transaction testing and performance evaluation across compliance, speed, and interoperability. The results are expected to inform regulatory frameworks and set standards for future use of CBDCs and stablecoins in global financial markets. This successful trial underscores the potential for coexisting ecosystems where state-issued CBDCs and privately-issued stablecoins interact securely and efficiently, paving the way for efficient, real-time cross-border transactions.