Chainlink Powers Cross-Border Digital Currency Transfers Between Hong Kong and Australia
Summary
- Chainlink is facilitating cross-border digital currency exchange between Australia and Hong Kong.
- The initiative is part of Phase 2 of Hong Kong’s Central Bank Digital Currency (CBDC) project.
- Key financial ecosystem players are involved in this phase, highlighting strong institutional backing.
- LINK token price has risen nearly 2%, driven by positive sentiment around the project’s deployment.
- The collaboration underscores Chainlink’s growing role in global financial infrastructure and interoperability.
- The pilot supports real-world use cases for blockchain-based cross-border settlements.
Chainlink Strengthens Role in Hong Kong-Australia Cross-Border CBDC Pilot
Chainlink is playing a key role in Hong Kong’s efforts to enable cross-border payments using central bank digital currencies (CBDCs). As part of the second phase of the e-HKD pilot program, Chainlink’s infrastructure is being leveraged to facilitate the transfer of tokenized funds between Hong Kong and Australia.
Powering Cross-Border Transfers with CCIP
The pilot taps Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to support secure and reliable digital currency exchanges across jurisdictions. According to an announcement by Chainlink on X, the pilot will involve the exchange of Hong Kong’s e-HKD for A$DC, a stablecoin pegged to the Australian dollar.
This pilot is a major component of the e-HKD Phase 2 initiative, which focuses on testing cross-border transaction capabilities. The objective is to demonstrate real-time settlement of tokenized assets between the two economies using blockchain technology.
Key partners in the initiative include Visa and ANZ, the issuer of A$DC. Asset managers Fidelity International and ChinaAMC are also participating, adding institutional weight to the experiment. Alongside CCIP, Chainlink’s Digital Transfer Agent (DTA) technology will support multichain fund operations and regulatory compliance.
Chainlink’s infrastructure will underpin the Payment-versus-Payment (PvP) settlement model, ensuring transactions are executed only when both parties have met their obligations. The DTA framework helps facilitate this process while maintaining standards across different jurisdictions and token formats.
Growing Interest in Blockchain-Powered Settlement
The pilot comes amid a broader wave of interest in blockchain-based cross-border payments. Major companies including Apple, X (formerly Twitter), Airbnb, and Google are reportedly exploring the use of stablecoins for international transactions.
LINK Price Responds to Growing Adoption
Following the announcement, Chainlink’s native token LINK saw a modest 2% gain, trading around $14.06. The price movement reflects growing market optimism around Chainlink’s expanding role in real-world financial infrastructure.
Chainlink has signaled plans to deepen its participation in CBDC projects, aiming to extend the PvP model across the full transaction lifecycle. This expansion could enable continuous, on-chain markets while enhancing privacy and reducing counterparty risk.
Earlier in May, World Liberty Financial selected Chainlink to support cross-chain transfers of its USD1 stablecoin, further reinforcing Chainlink’s position as a key player in digital finance.
