Standard Chartered and Mastercard explore use cases for asset tokenisation

credit: Shutterstock
credit: Shutterstock

Standard Chartered Bank Hong Kong (SCBHK) is working alongside Mastercard and other partners to develop use cases on the benefits of tokenised deposits. 

The pilot programme will explore proof-of-concept operational and risk management benefits regarding the tokenisation of assets in a digital sandbox that will also be supported by Mox Bank and Libeara

The first live test will be conducted in the Mastercard Multi-Token Network and will work on use cases that focus on carbon credit. This will pertain to how Mox clients can tokenise carbon credit to offset their carbon usage. 

This task will be performed by Libeara, a tokenisation platform developed by Standard Chartered Ventures. The Mastercard Multi-Token Network will then be able to tokenise the client’s deposit which then performs an atomic swap of two tokenised instruments. 

This use case aims to develop transparent, real-time transaction data between Mox and SCBHK with the end client being able to view a tokenised version of their carbon footprint. 

Mary Huen, CEO, Hong Kong, Standard Chartered, commented: “The tokenisation of real-world assets and the potential use of different forms of tokenized currency is integral to the future of the financial industry. 

“SCBHK is keen to stay at the forefront of tokenisation and drive fintech development in Hong Kong. Under the guidance of the HKMA, we are proud to pioneer this project with our virtual bank Mox, incubated venture Libeara, and longtime partner Mastercard, with the objective of catalysing the adoption of tokenisation in financial assets. 

“This proof-of-concept developed around tokenized carbon credits and tokenized deposits is a testament to how SCBHK supports sustainable finance innovation in Hong Kong’s digital economy.”

Proof-of-concept has become a part of Standard Chartered’s strategic approach to collaboration with partners on innovative digital finance solutions. Other key projects have included the growth of digital assets, such as Project Ensemble and Project mBridge.

Mastercard also took on a stronger commitment to helping people, businesses and governments better understand and trust how blockchain technology can be used to address pain points and build more efficient systems. 

This includes working with a range of partners in Hong Kong and across the world to deploy technologies to benefit businesses that are looking to exchange value safely and securely.

Helena Chen, Managing Director, Hong Kong & Macau, Mastercard said: “To unlock the full potential of blockchain technology, continuous collaboration, testing, exploration, and development of innovative use cases are needed to bring real value to businesses and interoperability across the industry. 

“Using the Mastercard MTN, Mastercard is energised to partner with industry-leading players like SCBHK, Mox and Libeara to develop real-world applications that reshape how consumers and businesses connect, interact, and transact. 

“As the Hong Kong Monetary Authority (HKMA) further develops Hong Kong as a leading digital assets hub, Mastercard is fully committed to supporting its efforts to drive fintech innovation and the advancement of the tokenisation market in Hong Kong.”