October 15, 2025
By Anjali Kochhar
Hong Kong and mainland China are strengthening financial cooperation with a new joint pilot program to test cross-border credit verification using blockchain technology. The initiative, launched in 2024, is being formalised as the Greater Bay Area Cross-Border Credit Information Sharing system.
The project is spearheaded by the Hong Kong Monetary Authority (HKMA) in coordination with the People’s Bank of China (PBoC). It aims to enable seamless and secure exchange of verified credit data across the Guangdong-Hong Kong-Macao region, improving trust and efficiency in financial systems. Officials have stated that after successful trial runs, the program will move toward full-scale implementation.
As part of the pilot, blockchain nodes have been deployed in both Hong Kong and Shenzhen to facilitate secure, two-way data exchange between participating financial institutions. The system builds on the existing Shenzhen-Hong Kong Cross-Border Data Verification Platform, integrating it with blockchain layers for added security.
In practice, individuals and firms registered with approved credit information providers can upload their data onto the platform. Every dataset is encrypted and processed to generate a 64-bit hash code. The counterpart across the border can verify authenticity by matching the hash without exposing the underlying sensitive data. This ensures confidentiality while enabling efficient verification. Accountability is maintained through a combination of automated encryption and manual checks by authorized entities.
The HKMA emphasised that the blockchain model enhances not only data security but also processing speed, making cross-border credit checks faster and less error-prone.
Alongside the credit data pilot, Hong Kong is advancing its stablecoin regulatory framework, which came into force on August 1, 2025. So far, more than 36 entities have formally applied for licenses out of around 77 expressions of interest. Applicants include major banks, fintech firms, securities houses, and e-commerce players. The HKMA expects its first approvals in early 2026, subject to strict KYC and risk management standards.
One notable applicant is Standard Chartered, which is partnering with Hong Kong Telecom (HKT), Animoca Brands, and Anchorpoint Financial in its license bid. However, HKMA officials caution that only a limited number of applications will pass the vetting process.
Despite these advancements, China continues to uphold its ban on cryptocurrency trading and mining, enforced since 2021. However, authorities appear open to controlled regional experiments that harness innovation without losing regulatory control, especially in blockchain-based identity, credit, and data infrastructure.
The Hong Kong-mainland pilot represents this balance: it aims to modernize cross-border financial data sharing while maintaining strict oversight over access, verification, and security. If successful, analysts believe it could serve as a blueprint for regional fintech cooperation across Asia.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
