The Hong Kong Gold Exchange and China CITIC Bank International have completed a tokenized deposit gold test.

On November 2, the Hong Kong Gold Exchange and CITIC BANK (International) announced that they had successfully completed the tokenized deposit gold pilot test under the Hong Kong Monetary Authority's Ensemble project, formally bringing tokenized deposits into the gold market and achieving round-the-clock "delivery versus payment," with the target of an official launch in 2027. As the sole settlement bank of the Hong Kong Gold Exchange, CNCB International successfully completed the tests, including cross-bank settlement, and aims to officially launch the service commercially next year. At that time, traditional deposits and tokenized deposits will operate in parallel under a dual-track model, breaking traditional trading restrictions and fully supporting 7X24 round-the-clock and real-time settlement of gold transactions, significantly improving settlement efficiency and reducing risk. The Hong Kong Gold Exchange said this is an important step in the exchange's settlement operations, helping to consolidate market confidence and enhance Hong Kong's influence in gold pricing. During the test period, a total of 4 member firms participated. The current test settlement speed requires only T+5 minutes, and in the future it is expected to achieve T+0 real-time trading. It is expected that the shortening of settlement time will drive market trading volume and liquidity up by 2 to 3 times, and can help member firms with refining backgrounds increase trading volume by as much as 10 times, while also solving the pain points of cumbersome settlement and high financing costs for non-standardized gold products in the past. Haywood Cheung, Chairman of the Hong Kong Gold Exchange, said that gold prices are currently at a record high of US$4,000 per ounce. Gold trading, transshipment and refining are all capital-intensive businesses with extremely high requirements for capital flow. The more robust and diversified the settlement, the more vibrant the market. Yuan Miaoling, Director of Personal and Business Banking at CNCB International, pointed out that after the introduction of smart contracts into transactions, transactions can be completed automatically once the terms are met, breaking geographical restrictions and allowing investors worldwide to participate. This successful test marks that tokenization technology has formally moved from concept to practice and achieved interbank settlement connectivity. This move is also an important practice by CNCB International, through financial technology innovation, in response to the government's first five-year plan strategy of developing bulk commodities and gold trading. In the future, it will continue to work with the HKMA and the exchange to jointly promote a new chapter in Hong Kong's digital finance.