Chainlink Facilitates Cross-Border CBDC–Stablecoin Pilot Between Hong Kong and Australia

In a significant step forward for blockchain-enabled cross-border payments, Chainlink (LINK) has successfully powered a Central Bank Digital Currency (CBDC)–stablecoin exchange between Hong Kong and Australia.

This pilot, conducted under Phase 2 of the Hong Kong Monetary Authority’s (HKMA) e-HKD+ Pilot Program, highlights the transformative potential of blockchain technology in global finance. The initiative also saw the active involvement of financial heavyweights Visa, ANZ, Fidelity International, and China AMC.

The Pilot’s Core Mechanism

The pilot project focused on enabling seamless transactions between Hong Kong’s digital currency, e-HKD, and an Australian dollar-stablecoin. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) was at the heart of this exchange, ensuring secure and efficient cross-border transactions.

One of the most notable aspects of the pilot was its demonstration of tokenized assets in action. For instance, an Australian investor at ANZ could use their deposits to purchase a Hong Kong money market fund (MMF). ANZ would internally handle the foreign exchange conversion from Australian dollars (AUD) to Hong Kong dollars (HKD). Using VTAP APIs, ANZ then minted tokenized HKD deposits, which were transferred securely to the investor’s Ethereum Sepolia wallet.

Visa, a key participant in the pilot, expressed its enthusiasm for the project. “Visa’s long-term collaboration with the HKMA and our partners has provided valuable insights into tokenization technology and new business flows. We are excited to work with our partner banks to bring real-world applications of tokenization to the region,” a Visa Crypto representative said.

Implications for CBDC and Stablecoin Adoption

This pilot is part of a broader trend in Asia, where digital currencies are rapidly gaining traction. With the stablecoin market reaching a valuation of $225 billion in early 2025, the region is at the forefront of blockchain innovation. The e-HKD+ Pilot Program illustrates how CBDCs and stablecoins can coexist, offering a glimpse into the future of financial systems.

Chainlink’s role in this ecosystem underscores its growing influence. Known for its work in blockchain interoperability, Chainlink has collaborated with global institutions like Swift and played a key role in advancing tokenization standards.

The company’s Cross-Chain Interoperability Protocol (CCIP) is increasingly seen as a vital tool for enabling secure and scalable blockchain applications.

Industry analysts believe that pilots like this could serve as a blueprint for broader adoption. However, challenges remain, including the need for robust regulatory frameworks, consumer protections, and system resilience. Despite these hurdles, the technical feasibility of CBDCs and stablecoins is becoming increasingly clear.

Market Reaction and Future Outlook

Looking ahead, the next stage of the pilot will involve end-to-end testing of transactions. This phase aims to provide deeper insights into how tokenization can reduce counterparty risk in settlements. Visa’s representative emphasized the importance of this work, stating, “We are extremely excited about the future of tokenization for payments.”

In a parallel development, Hong Kong has recently approved the Stablecoin Licensing Bill, signaling its commitment to fostering a regulated and secure environment for digital assets. This regulatory clarity aligns with the broader ambitions of initiatives like the e-HKD+ program, paving the way for the coexistence of CBDCs and stablecoins.

As Hong Kong and Australia continue to explore the integration of CBDCs and stablecoins, this pilot serves as a promising example of blockchain’s transformative potential. With further developments expected under the e-HKD+ program, 2025 could mark a turning point for blockchain technology in mainstream banking and cross-border payments.