Solowin Announces Participation in HKMA’s Project Ensemble Sandbox to Jointly Promote the Development of Hong Kong's Tokenization Market

Rhea-AI Summary

SOLOWIN Holdings (NASDAQ: SWIN) has joined a consortium of financial institutions to participate in the Hong Kong Monetary Authority's (HKMA) Project Ensemble Sandbox. The project, launched in August 2024, focuses on exploring 'Fixed Income and Investment Funds' use cases for tokenized currencies and assets.

The company will collaborate with China AMC (HK), HSBC, Hang Seng Bank, OSL exchanges, and Fosun Wealth Holdings in this initiative. The sandbox trial aims to contribute to Hong Kong's development as a global hub for tokenized deposits and assets, focusing on wholesale central bank digital currency (wCBDC) applications.

Positive

• Selected as first-phase tester in HKMA's prestigious Project Ensemble Sandbox
• Strategic partnership with major financial institutions including HSBC and Hang Seng Bank
• Early mover advantage in Hong Kong's emerging tokenization market

Negative

• None.

Insights

Financial Technology Analyst

The participation in HKMA's Project Ensemble Sandbox represents a strategic but early-stage move into the tokenization market. While the collaboration with major financial institutions like HSBC and Hang Seng Bank adds credibility, SOLOWIN's $20.8M market cap suggests immediate financial impact. In simple terms, think of this as getting a seat at an exclusive table where big banks are testing new digital money technology - it's prestigious but won't affect profits right away.

The focus on "Fixed Income and Investment Funds" use cases indicates a conservative approach to digital asset integration, targeting institutional rather than retail applications. This sandbox environment provides valuable regulatory cover for experimentation with wholesale CBDCs, but concrete revenue opportunities remain speculative. For average investors, imagine this as joining a pilot program - it shows promise but needs time to prove real-world value.

Market Research Analyst

Hong Kong's push to become a global tokenization hub through Project Ensemble creates strategic positioning opportunities for participants. However, SOLOWIN's relatively small size compared to partners like HSBC suggests they may serve more as a technology testbed than a major market mover. The inclusion alongside established players provides valuable network effects and potential first-mover advantages in the emerging tokenized asset space.

Breaking this down simply: it's like getting early access to test a new financial product alongside industry giants. While exciting, the immediate business impact is since this is still in testing phase. The real value lies in building relationships and gaining expertise that could pay off when these technologies become mainstream.

Hong Kong, Dec. 26, 2024 (GLOBE NEWSWIRE) -- SOLOWIN HOLDINGS (Nasdaq: SWIN) (“SOLOWIN” or the “Company”), a leading financial services firm providing high-net-worth and institutional investors with solutions across traditional and virtual assets, has joined China AMC (HK), HSBC, Hang Seng Bank, OSL exchanges, and Fosun Wealth Holdings to submit a sandbox trial to the Hong Kong Monetary Authority (HKMA) under Project Ensemble Sandbox. The Company has become one of the first-phase testers of the sandbox launched in August 2024 which will initially explore "Fixed Income and Investment Funds" use case for the local application of tokenized currencies and assets. By leveraging the collective asset management experience and innovative capabilities of all participants, this trial aims to contribute to the development of Hong Kong’s tokenization market.

The Project Ensemble is a new wholesale central bank digital currency (wCBDC) project led by the HKMA on tokenized money and assets. Working alongside industry peers and various stakeholders, the project endeavours to lay the groundwork for Hong Kong to become the top global hub for tokenized deposits and assets.

Peter Lok, Chairman of the board at Solomon JFZ (Asia) Holdings Limited, a wholly-owned subsidiary of SOLOWIN, stated, "We are thrilled to be part of the Project Ensemble Sandbox and to play a key role in exploring tokenized investment products in Hong Kong. This initiative aligns with our mission to drive innovation and accessibility in the digital investment opportunities, and we are confident that it will have a significant impact on the Hong Kong tokenization market. We look forward to working with our partners to make this project a success."

Thomas Zhu, Head of Digital Assets and Family Office Business at China AMC (HK), added, "We are excited to lead the way in exploring tokenized fund products. As a key participant in the Project Ensemble Sandbox, we are committed to leveraging our deep expertise in digital asset management and our innovative capabilities to drive the growth of Hong Kong's tokenization market. This initiative represents not just an opportunity for us and our partners, but a significant milestone in making digital investment solutions accessible to a wider audience."

Suvir Loomba, Regional Head of Asia, Securities Services, Markets and Securities Services, HSBC said, “HSBC is pleased to support China AMC (HK)’s use case under the HKMA’s Ensemble Sandbox as tokenization agent and settlement bank. Leveraging our expertise from previous use cases, this project further demonstrates the practical potential of tokenized assets in enhancing the speed and efficiency of investment fund settlement. We look forward to collaborating with our partners to drive innovation and shape the future of digital investments."

Gilbert Lee, Head of Strategy & Planning and Chief of Staff to CE of Hang Seng Bank, said, “We are delighted to collaborate with diverse industry partners in exploring use cases through the Project Ensemble Sandbox. The Project Ensemble Sandbox provides us with an environment to test tokenization use cases using tokenized deposits. Hang Seng will continue to participate in further testing and research of use cases for Project Ensemble and will continue to be at the forefront of promoting digital currency development.”

Gary Tiu, Executive Director of the Board and Head of Regulatory Affairs at OSL Exchange, commented: "Project Ensemble serves as a vital platform that unites diverse stakeholders from the financial and Web3 ecosystems to explore and drive forward the tokenization market. We are eager to collaborate with our partners and contribute to this transformative journey, harnessing our extensive expertise and liquidity as a trusted, regulated virtual asset exchange in Hong Kong."

Cai Hua, Chief Operating Officer of Fosun Wealth Holdings, said, "We are honored to be a part of the Project Ensemble Sandbox. Fosun Group has been involved in the Web3 space for 10 years and continues to invest in potential projects. As a bridge between traditional finance and Web3, Fosun Wealth looks forward to collaborating with our partners to explore the field of tokenized investment and build a broader ecosystem for the industry through this project."

About Solowin Holdings

Solowin Holdings (NASDAQ: SWIN) is a Hong Kong based financial services firm providing a comprehensive one-stop solution for high-net-worth and institutional investors worldwide. Spanning both traditional and virtual assets, Solowin’s offerings include investment banking, wealth management, asset management, and Web3, tailored to support the next generation of investors. Solowin’s wholly owned subsidiary, Solomon JFZ (Asia) Holdings Limited (“Solomon JFZ”), is one of Hong Kong’s first batch regulated virtual asset service providers. Its advanced electronic platform, Solomon VA+, is Hong Kong's first all in one app to integrate traditional and virtual asset trading with wealth management services.

For more information, please visit the Company’s website at https://solowin.io or its investor relationship page at https://ir.solowin.io.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. We have attempted to identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the Company’s filings with the SEC including the "Risk Factors" section of the Company’s most recent Annual Report on Form 20-F as well as in its other reports filed or furnished from time to time with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the SEC, which are available for review at www.sec.gov.

For investor and media inquiries please contact:

SOLOWIN HOLDINGS
Investor Relations Department
Email: ir@solomonwin.com.hk

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is SWIN's role in the HKMA Project Ensemble Sandbox?

SOLOWIN (SWIN) is participating as a first-phase tester in the sandbox trial, exploring Fixed Income and Investment Funds use cases for tokenized currencies and assets alongside other major financial institutions.

Who are SWIN's partners in the HKMA Project Ensemble Sandbox?

SWIN is collaborating with China AMC (HK), HSBC, Hang Seng Bank, OSL exchanges, and Fosun Wealth Holdings in the sandbox trial.

When was the HKMA Project Ensemble Sandbox launched?

The HKMA Project Ensemble Sandbox was launched in August 2024.

What is the main objective of SWIN's participation in Project Ensemble?

SWIN aims to contribute to developing Hong Kong's tokenization market and explore tokenized investment products through the Project Ensemble initiative.

How does Project Ensemble align with SWIN's business strategy?

The project aligns with SWIN's mission to drive innovation and accessibility in digital investment opportunities while expanding their presence in the Hong Kong tokenization market.