DBS Bank (Hong Kong) Limited (“DBS Hong Kong”) today announced its participation in the Hong Kong Monetary Authority’s (HKMA) Phase 2 of the e-HKD Pilot Programme, with a view to examine innovative applications of e-HKD and digital money accessible to individuals and corporates. The insights gained from this program will be crucial in informing the HKMA about the practical issues that may arise in designing, implementing and operating a potential digital money ecosystem that comprises both publicly and privately-issued digital moneys.

In an exciting development, DBS Hong Kong is leveraging an Environmental, Social, and Governance (ESG) reward platform to incentivise sustainable behaviours to the general public through Phase 2 of the e-HKD Pilot Programme led by HKMA. Corporates can create ESG campaigns and set redemption guidelines to foster a green corporate culture and promote participation. Users who complete green actions will earn ESG reward points, which can be redeemed for a hypothetical e-HKD to purchase green products and services at designated SME merchants.

This use case promotes a low-carbon lifestyle and incentivises ESG efforts for corporates to achieve their sustainability goals and to adhere to ESG reporting requirements. It helps SME merchants in increasing business traffic, engaging in the program, and re-evaluating eco-friendly business operations during challenging economic environments. It also motivates the general public to take actions in support of environmental protection.

Boris Chan, Managing Director and Head of Global Transaction Services, DBS Bank Hong Kong, said, “DBS Hong Kong welcomes the launch of Project e-HKD+ led by the Hong Kong Monetary Authority. The expanded project scope of Project e-HKD+ allows DBS Hong Kong to explore innovative applications for digital money while supporting the sustainable development of the tokenisation market in Hong Kong. Leveraging the e-HKD with potential smart contract functionality will ensure transparency, scalability, security and settlement efficiencies for corporates, merchants and consumers. DBS Hong Kong is excited to be at the forefront of this transformation and driving substantial advancements across the financial sector.”

DBS’s Ethereum Virtual Machine (EVM) compatible blockchain and its suite of integrated services enables scalable and interoperable rewards programs. In particular, the use of smart contracts to orchestrate rewards lifecycle management and automate settlement using the underlying e-HKD will enable seamless transactions and reconciliation among corporates, merchants and end users.

The HKMA has successfully completed Phase 1 of the e-HKD Pilot Programme in October 2023. Building on this success, the next phase of the e-HKD Pilot Programme will further explore the programmability, tokenisation, and atomic settlement. By joining Phase 2 of the e-HKD Pilot Programme, DBS Hong Kong is poised to play a pivotal role in shaping the future of digital money and positioning Hong Kong as an innovative financial hub.

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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.

DBS Hong Kong joins HKMA’s phase 2 of the e-HKD pilot programme to explore commercial use cases of digital currency