Hong Kong’s market operator and central bank have begun testing a wholesale central bank digital currency for derivatives trading, expanding the use of digital money within the city’s financial infrastructure.
Summary
- HKEX and the HKMA have launched a pilot to test e-HKD for derivatives margin payments during after-hours trading.
- The trial could allow clearing participants to transfer margin funds outside regular banking hours using a wholesale CBDC.
- The initiative extends Hong Kong’s wholesale e-HKD strategy into a live capital markets use case after authorities prioritized institutional adoption.
A joint announcement from Hong Kong Exchanges and Clearing (HKEX) and the Hong Kong Monetary Authority (HKMA) said the pilot will explore whether e-HKD can support advance margin payments for the after-hours trading (AHT) session in Hong Kong’s derivatives market.
Under the proposal, clearing participants would be able to use e-HKD, a wholesale central bank digital currency designed to operate around the clock, to transfer margin outside regular banking hours. HKEX and the HKMA said the arrangement would strengthen risk management during the after-hours session while preserving existing operational processes.
The initiative targets a longstanding limitation in the current system. At present, clearing participants must submit advance margin deposit requests to HKFE Clearing Corporation Limited by 3 p.m. if they want those funds recognized for the following after-hours trading session.
HKEX said it has invited clearing participants under HKFE Clearing Corporation to join real-value trial transactions on a voluntary basis. The exchange added that any wider rollout would depend on regulatory approvals, market preparedness and other operational considerations.
“By exploring the use of CBDC, we aim to provide a more flexible and timely payment option outside of regular business hours, and address longstanding operational pain points in the industry. This project reflects the shared commitment of HKEX and the HKMA to embracing innovation, strengthening the resilience of our markets and reinforcing Hong Kong’s position as a leading international financial centre.” – Vanessa Lau, Chief Operating Officer at HKEX.
Meanwhile, Howard Lee, Deputy Chief Executive of the HKMA, said the pilot would test a wholesale CBDC application in a live market environment.
Wholesale CBDC strategy moves into live market testing
The latest trial builds on the HKMA’s decision to prioritize institutional applications for e-HKD after completing the second phase of its digital currency pilot program in 2025.
At the time, the HKMA concluded that e-HKD and tokenized bank deposits could support programmable and cost-effective transactions across financial services. Trial participants included banks, technology firms and financial institutions that tested digital money in practical use cases.
Authorities later said institutional demand for e-HKD exceeded interest from retail users. The central bank subsequently shifted its focus toward wholesale deployment, including tokenized financial markets and trade settlement applications.
The new HKEX pilot provides one of the clearest examples yet of that strategy. Rather than testing consumer payments, the project places e-HKD within Hong Kong’s derivatives market and uses it to support margin funding during trading activity that continues after banks have closed.
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