Safeheron Supports Hong Kong's Digital Currency Exploration, Laying the Core Security Foundation for the e-HKD Pilot Project

The successful completion of the Hong Kong Monetary Authority’s (HKMA) e-HKD pilot program again marks a significant step towards building a comprehensive digital currency framework in Hong Kong. According to a Caixin report on October 30, HKMA Chief Executive Eddie Yue wrote that the work on “e-HKD” and tokenization is part of a grand vision: to establish a comprehensive digital currency framework that fosters the complementary coexistence of different forms of tokenized money, including e-HKD, tokenized deposits, and regulated stablecoins^[1].

As a leading global fintech hub, Hong Kong continues to actively explore digital currency applications while maintaining a strategic focus on cutting-edge cryptographic technologies such as MPC. Aligned with this forward-looking vision, Safeheron was honored to provide the critical infrastructure for the “Control/Security” layer during the e-HKD pilot program.

In the whitepaper Reimagining a Future Empowered by e-HKD, Tokenized Deposits and Stablecoins—co-authored by Boston Consulting Group (BCG), ZA Bank, DLA Piper, HKT Payment Limited, paywith.glass, and VSFG—Safeheron contributed its practical expertise and technical insights. Drawing on the outcomes of the e-HKD pilot, this whitepaper aims to guide Hong Kong in constructing a more efficient, inclusive, and innovative financial ecosystem.

This forward-thinking exploration is dedicated to forging a path toward a more efficient, inclusive, and innovative financial ecosystem for Hong Kong, while also seeking to set a precedent for collaboration between central banks and the private sector worldwide in building the future of money.

A Two-Tiered Framework for a New Digital Currency Ecosystem

At a technical briefing on October 28, the HKMA officially outlined the core architecture of Hong Kong’s digital currency framework, innovatively dividing it into two main categories: “public money” and “private money”:

Public Money: The e-HKD issued by the HKMA, serving as a digital form of legal tender^[1].
Private Money: This includes tokenized deposits issued by commercial banks, stored-value facilities (SVFs) issued by licensed institutions (such as WeChat Pay and Alipay), and regulated stablecoins^[1].

This two-tiered design reflects the delicate balance struck by the regulatory authority between promoting innovation and ensuring stability. Currently, nine banks are piloting or using wholesale e-HKD applications, and seven banks are expected to launch tokenized deposits by 2025^[1].

Safeheron MPC + TEE: An Uncompromising Security Guarantee

In this forward-thinking digital currency ecosystem, the importance of security infrastructure cannot be overstated. For any digital currency, especially for the e-HKD and related stablecoins that underpin Hong Kong’s status as an international financial center, trust is paramount. This trust must be built on an unshakeable security foundation.

In this e-HKD pilot program, Safeheron provided the key infrastructure for the “Control/Security” layer, strengthening the overall security architecture, ensuring a controlled key recovery mechanism, and laying the groundwork for the future implementation of multi-signature technology.

To achieve this, we provided our proprietary, cutting-edge security solution that integrates Secure Multi-Party Computation (MPC) and a Trusted Execution Environment (TEE).

Building a Secure Crypto Future Together

As a core element of the future of finance, digital currencies play an indispensable role in unlocking the full potential of Web3 and DeFi, enabling seamless cross-border payments, and promoting global financial inclusion.

As Hong Kong continues to deepen its exploration of digital currencies through rigorous pilot initiatives, Safeheron—as a specialist in digital asset self-custody—is honored to collaborate with BCG, ZA Bank, and other leading partners. We were proud to contribute our security expertise to this in-depth industry whitepaper, showcasing e-HKD pilot use cases to further drive the broader adoption and application of digital currencies in the market.

Guided by increasingly robust regulatory compliance, the digital asset ecosystem is set to mature, driving a sustained rise in demand for security and compliance infrastructure. As the future financial landscape takes shape through innovative collaboration and cutting-edge technology, Safeheron looks forward to continuing to support the pioneering projects that are responsibly shaping our digital future.