HKMA & MAS Jointly Launch Cross-Border Stablecoin Clearing Pilot | Asia’s First Regulated Digital Currency Interoperability Network Officially Starts

Summary

The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS) have jointly launched a “Cross-border Stablecoin Clearing Pilot,” aiming to build Asia’s first regulated digital currency interoperability network. This project aims to reduce cross-border payment costs and improve settlement efficiency through blockchain technology, and to establish regional compliance standards, laying the foundation for digital financial integration in Asia.

I. Introduction: Asia Opens New Chapter in Cross-Border Digital Finance

In late October 2025, HKMA and MAS jointly announced the official launch of Project Evergreen – the Cross-border Stablecoin Clearing and Interoperability Pilot. This marks a landmark step toward building regulated instant settlement between Hong Kong and Singapore using stablecoins and blockchain, and is regarded as the most substantive progress in Asian digital financial connectivity to date.

II. Project Overview: Three-Layer Technical Architecture

The pilot is built around “regulated stablecoin interoperability” interoperability with the following structure:

1. Settlement Layer Permissioned blockchain jointly operated by HKMA and MAS nodes; multi-party consensus achieves sub-3-second cross-border finality.
2. Compliance Layer Real-time regulatory view + zero-knowledge proofs ensure supervisors can audit flows without exposing user privacy.
3. Interoperability Layer Compatible with e-CNY, Project Orchid (Singapore CBDC), HKD/SGD stablecoins, and major commercial stablecoins (USDT, USDC).

III. Core Policy Drivers

• Slash cross-border payment costs by ~70%
• Reduce Asia’s heavy reliance on USD-dominated SWIFT
• Harmonize regulatory standards across jurisdictions
• Strengthen regional financial autonomy

IV. Key Participants (Public-Private Partnership)

• Technology: HKUST Blockchain Lab, NUS Fintech Institute, HashKey, R3, Temasek
• Banks & Payment Institutions: Standard Chartered, DBS, HSBC, Hang Seng, AlipayHK, GrabPay
• Observers: Bank of Thailand, UAE Central Bank, BIS Innovation Hub

V. Innovative Mechanism: Dual-Stablecoin Settlement Model

When a Hong Kong payer sends HKD-stablecoin, the system instantly mints/burns equivalent SGD-stablecoin on the Singapore side with 1:1 atomic settlement. First-round test results:

• Average settlement time: 2.8 seconds
• Cost reduction vs SWIFT: 82%

VI. Regulatory Safeguards

• All participants must hold local licenses
• Unified AML/KYC standards
• AI-driven real-time risk-scoring engine with automatic freeze capability
• Zero-knowledge regulatory reporting

VII. Expected Regional Impact (2026–2028)

1. Expansion to ASEAN multi-currency network
2. Accelerated licensing frameworks for HKD/SGD stablecoins
3. Lower international settlement costs for SMEs
4. Gradual de-dollarization of Asian trade flows

VIII. Risks & Challenges

• Remaining regulatory nuance between HK and SG
• Potential impact on domestic monetary policy transmission
• Smart-contract and node security
• Public acceptance of “government-backed” stablecoins

IX. Market Reaction

Hong Kong & Singapore fintech stocks surged on announcement:

• BC Group (HK) +6.2%
• Silvergate Asia (SG) +5.7% Analysts view regulated cross-border stablecoins as the next major fintech battleground.

X. Conclusion: Cornerstone of Asia’s Digital Finance Future

From mBridge to Project Evergreen, Asia is choosing pragmatic collaboration over competition to build the world’s most advanced regulated digital-currency corridor. When fully deployed, businesses and individuals across the region will enjoy near-instant, low-cost, 24/7 cross-border payments under full regulatory protection.

As the HKMA stated: “This is the crucial step that turns digital currency from concept to reality — and from competition to collaboration.”

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