Chainlink Helped Visa, ANZ, and Fidelity Do What Banks Have Been Trying to Do for Years

Visa, ANZ, ChinaAMC (HK), and Fidelity International have successfully completed a cross-border settlement solution as part of the Hong Kong Monetary Authority’s (HKMA) e-HKD Pilot Programme Phase 2. They utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to transfer tokenized assets and digital currency between a private bank blockchain and the public Ethereum network.

The pilot showcased how an Australian investor could purchase a tokenized money market fund (MMF) from a Hong Kong asset manager with rapid settlement and automated compliance checks, bypassing traditional clearing intermediaries.

What Did the Pilot Actually Test?

The four institutions were part of the HKMA’s Phase 2 program, which began in September 2024 and focused on tokenized asset settlement and digital money programmability.

Two experiments were conducted:

1. ANZ and Fidelity International tested a flow where an Australian investor deposited AUD, received ANZ’s Australian dollar stablecoin (A$DC), exchanged it for a wrapped hypothetical e-HKD, and used it to purchase tokenized Fidelity MMF units.

2. ANZ, Visa, and ChinaAMC (HK) replaced the e-HKD with tokenized HKD deposits. ANZ minted tokenized deposits using Visa’s Tokenized Asset Platform (VTAP) and the ERC-3643 token standard, which embeds compliance rules into the token contract.

Both experiments utilized a delivery-versus-payment (DvP) structure to settle fund units and payments simultaneously in a single atomic transaction, testing cross-chain transfer, automated fund unit issuance, real-time identity verification, and compliance enforcement.

How Does Chainlink CCIP Connect a Private Bank Chain to Ethereum?

ANZ operates DASChain, a private permissioned Layer 2 blockchain using ZK Validium architecture, while Fidelity and ChinaAMC deployed fund contracts on Ethereum’s Sepolia testnet. Chainlink’s CCIP facilitated the connection by relaying details between the two chains, verifying cross-chain identity credentials, and confirming investor eligibility.

Identity Verification and Settlement Inside One Transaction Flow

CCIP coordinated identity, compliance, and asset issuance in a single flow, automating fund unit issuance based on on-chain NAV data without manual reconciliation at the issuance point.

Fernando Vazquez, President of Capital Markets at Chainlink Labs, highlighted how the pilot showcased Chainlink’s ability to power financial applications across public and permissioned blockchains within existing regulatory frameworks.

What Is Atomic Settlement and Why Does It Matter Here?

Atomic settlement ensures that both payment and asset delivery complete together or not at all, eliminating counterparty exposure. By using DvP transactions to pair tokenized HKD deposits with MMF units, the pilot achieved near-real-time settlement, reducing delays and manual reconciliation.

Chainlink’s Growing Footprint Across Institutional and DeFi Use Cases

This pilot is part of Chainlink’s broader CCIP deployments, which have facilitated over $28 trillion in on-chain transaction value. The integration of CCIP in various contexts, from institutional pilots to DeFi ecosystems, demonstrates its versatility and scalability.

Conclusion

The e-HKD Phase 2 pilot illustrated the technical feasibility of compliant cross-border tokenized fund settlement. Chainlink’s CCIP successfully connected a private bank chain to a public blockchain, verified investor identity in real time, and coordinated payment and delivery in a single atomic transaction. The next steps involve establishing regulatory, governance, and operational standards for scaling these components in live markets.

Resources

1. HKMA’s newly released report: e-HKD Pilot Programme Phase 2: Transforming Global Payments: The Role of Tokenized Money & Funds in Cross-Border Transactions

2. Chainlink on X: Post on March 4

3. Blog article by Monad: Chainlink Enables Bridging of Coinbase’s cbBTC to the Monad DeFi Ecosystem