HSBC Bank Tests e-HKD+ Stablecoin on Multiple Blockchains – Is China’s CBDC Revolution Imminent?

HSBC just fired the starting pistol on a multi-chain stablecoin experiment that could reshape Asia's digital currency race.

The banking giant's e-HKD+ pilot stretches across Ethereum, Polygon, and Solana—a clear play for interoperability dominance. No more walled gardens.

Why this matters: While Western banks dabble in tokenized deposits, HSBC's move hints at deeper CBDC ambitions. That 'plus' in e-HKD+ isn't just branding—it's a hedge against Beijing's digital yuan rollout.

Behind the scenes: Sources whisper about HSBC's Hong Kong team running stress tests at 5,000 TPS. Old money meets Web3 infrastructure.

The cynical take: Another 'innovation' that lets banks control the rails while pretending to decentralize. But hey—at least the gas fees are lower than private jet fuel.

Practical Use Cases and Public Sentiment

The pilot focused on how a digital Hong Kong dollar could function in real-world scenarios. HSBC explored how e-HKD could serve not just as a store of value and a means of transfer, but also as a settlement utility for tokenised assets.

Key areas of investigation included scalability across both public and private blockchains, the role of Privacy Enhancing Technologies (PET), and the use of Decentralised Identity (DID) systems to maintain security and user privacy.

To complement its technical exploration, HSBC surveyed over 700 Hong Kong residents and investors. Findings revealed that 90% of respondents valued privacy in digital currency transactions.

While just 42% of the general public said they were familiar with e-HKD, that figure ROSE to 65% among professional investors. Notably, one-third of participants expressed willingness to use e-HKD for trading digital assets, citing the perceived safety of a government-backed, blockchain-based currency.

HSBC’s Broader Role in Hong Kong’s Digital Finance Push

Beyond Project e-HKD+, HSBC said it is playing a leading role in Hong Kong’s broader digital asset initiatives.

The bank is a member of the e-HKD Industry Forum and has supported related programs such as Project mBridge and Project Ensemble. It also helped issue the HKSAR Government’s digital green bonds and recently launched a Tokenised Deposit Service for corporate clients—Hong Kong’s first bank-led blockchain settlement solution.

HSBC executives Luanne Lim and John O’Neill stressed the bank’s dedication to financial innovation and the advancement of secure, scalable digital currencies.

More findings from Project e-HKD+ are expected to be released later this year, potentially laying the groundwork for a larger CBDC rollout in the region.

Hong Kong CBDCs and Crypto Trading Licenses

Hong Kong’s Securities and Futures Commission (SFC) has recently issued another license under the new crypto trading platform regime, granting approval to HKVAX following OSL and HashKey.

Hong Kong's financial regulator has granted its third crypto trading license, with plans to approve more by the end of the year. #HongKong #Cryptohttps://t.co/K4DfrfbbHn