DBS Hong Kong has completed a pilot in Phase 2 of the e-HKD programme and collaborated with “ZERO2”, an ESG rewards platform created by Negawatt Utility Limited, to actively explore Hong Kong’s digital money ecosystem.
The pilot is powered by DBS Token Services, the bank’s suite of services that integrate tokenisation and smart contract capabilities with its award-winning transaction banking services. With these capabilities, DBS piloted the use of Purpose Bound Money (PBM) technology to attach specific spending conditions to an e-HKD. In partnership with “ZERO2”, an environmental, social, and governance (ESG) rewards platform created by Negawatt Utility Limited, the pilot issued PBM-based digital vouchers to participants when they complete green actions. These vouchers were programmed for spending at designated merchants. Once the vouchers’ use is verified, merchants instantly receive payments in the form of hypothetical e-HKD at the point of sale, which could then be off-ramped to HKD via the Faster Payment System (“FPS”), streamlining voucher settlement and reconciliation.DBS Hong Kong plans to release a detailed report later this year, outlining the benefits for all stakeholders and other key findings, in alignment with HKMA’s report of the e-HKD programme.Jolynn Wong, Managing Director and Head of Global Transaction Services, DBS Bank Hong Kong, said, “DBS Hong Kong is deeply invested to shaping the future of payments. Our involvement in the HKMA’s Phase 2 of the e-HKD Pilot Programme and extensive tokenisation expertise underscore this commitment. At the forefront of programmable money and conditional payments, we are developing DBS Token Services to help corporates unlock efficiencies and deliver transformative, value-added services that redefine payments for our clients in Hong Kong.”A recent DBS Hong Kong survey of over 100 SMEs revealed that nearly half (45%) are interested in adopting ready-to-use digital platform to simplify the tracking and rewarding of staff’s participation in green initiatives. This signifies a growing demand for customisable digital platforms that boost employee engagement and amplify ESG efforts.Arthur Lam, Chief Executive Officer, Negawatt Utility Limited said, “ZERO2 actively promotes Hong Kong’s green economy. We are excited about our partnership with DBS Hong Kong, leveraging blockchain technology to incentivise practical ESG actions among corporates, merchants, and individuals through the innovative use of digital money and programmability. By quantifying ESG impacts at the individual level, we align with HKMA’s green finance initiatives. The successful pilot aims to contribute valuable insights to the HKMA for their assessment of the feasibility of mass adoption of an e-HKD within Hong Kong’s retail context.”The use of tokenised money holds significant potential that extends beyond rewards programmes to treasury management, supply chain payments, and improving governance in payment processes. DBS Hong Kong’s active efforts in this space underscore the bank’s commitment to supporting Hong Kong’s ongoing exploration of digital money, and its development of a robust and innovative financial ecosystem.
