DBS Hong Kong completes pilot under Project e-HKD+, leveraging tokenisation and programmability to enhance digital voucher programmes | 繁體
DBS' pilot under Phase 2 of the e-HKD Pilot Programme explores a more efficient, faster settlements and new experiences for corporates, merchants and users
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.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
