Hong Kong Gold Exchange and CNCBI Complete Tokenized Deposit Gold Test

The Zhitong Finance App learned that on November 2, the Hong Kong Gold Exchange and China CITIC Bank (International) announced that they have successfully completed the gold pilot test for tokenized deposits under the Hong Kong Monetary Authority's Ensemble project, officially bringing tokenized deposits into the gold market and achieving “two banking options” around the clock. The goal is to officially launch in 2027.

As the only settlement bank on the Hong Kong Gold Exchange, CNBC International has successfully completed tests including interbank settlement. The goal is to officially commercialize and launch the market next year. At that time, it will achieve a dual track of traditional deposits and tokenized deposits, break traditional transaction restrictions, and fully support gold transactions to achieve 7X24 round-the-clock and real-time settlement, greatly improving settlement efficiency and reducing risk.

According to the Hong Kong Gold Exchange, this is an important step in the exchange's settlement operation, helping to strengthen market confidence and enhance the influence of Hong Kong gold pricing. During the test period, a total of 4 employees participated. Currently, the test settlement speed is only T+5 minutes, and it is expected that T+0 real-time transactions will be achieved in the future. It is expected that shortening the settlement time will increase market transaction volume and circulation by 2 to 3 times, and also help workers with a background in smelting to increase transaction volume by 10 times, and solve the pain points of complicated delivery and high financing costs of non-standardized gold products in the past.

Chairman Zhang Dexi of the Hong Kong Gold Exchange said that the current gold price has reached a record high of 4,000 US dollars per ounce. Gold trading, transshipment and purification are all capital-intensive businesses, which require extremely high capital flow. The more stable and diversified settlement, the more dynamic the market.

Yuan Miaoling, director of personal and commercial banking at CNBC International, pointed out that after the introduction of smart contracts, transactions can be completed as long as the terms are automatically met, which will break geographical restrictions and allow investors from all over the world to participate. This successful test marks the formal transition of tokenization technology from concept to practice, and the realization of interbank settlement connectivity. This move is also an important practice of developing commodity and gold trading strategies in the government's first five-year plan through fintech innovation. In the future, CNCBI will continue to work with the HKMA and the Exchange to jointly promote a new chapter in digital finance in Hong Kong.