Visa, Chainlink Complete CBDC, Stablecoin Swap
A significant stride in digital finance has been made. Visa and Chainlink successfully piloted a cross-border blockchain transaction.
This occurred within the Hong Kong Monetary Authority’s (HKMA) e-HKD+ Programme. Central bank digital currency (CBDC) and stablecoins were both utilized. This trial marks a crucial step forward.
Collaborating with ANZ, ChinaAMC, and Fidelity International, this project stands out. It’s a pioneering simulation of programmable money. Its focus was cross-border investment in tokenized assets. The real-world application here is notable.
Streamlining Global Investments
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) was central. It linked ANZ’s private blockchain, DASChain. The connection extended to Ethereum’s public testnet (ETH). An Australian investor then made a move. They exchanged an AUD-backed stablecoin (A$DC) for e-HKD. This digital Hong Kong dollar then bought a tokenized money market fund (MMF). Hong Kong asset managers offered this fund.
The entire process achieved nearly instant settlement. This design eliminates risks of delayed cross-border transactions.
Unlocking Efficiency and Transparency
Visa’s Tokenized Asset Platform (VTAP) was key. It enabled digital money creation and movement. Chainlink CCIP coordinated smart contracts. This included payment-versus-payment (PvP) and delivery-versus-payment (DvP) flows. On-chain identity verification was also part of the pilot. Chainlink’s compliance services facilitated this. Token issuance was tested too. ERC-20 and ERC-3643 standards were used. This evaluated regulatory compatibility and security.
This simulation demonstrates a powerful potential. Australian investors could directly access Hong Kong funds. They can use either CBDC or stablecoins. This removes intermediaries effectively. Wait times are drastically reduced. Transparency also sees a significant boost. Fund subscriptions currently take days to settle. With blockchain, this process completes in seconds. This applies 24/7, even on holidays.
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