Case Study: HKEX achieves faster, more efficient Northbound Stock Connect settlement with Digital Asset

Hong Kong Exchanges and Clearing is using Daml to build the next-generation securities settlement platform connecting Hong Kong to mainland China

HKEX, one of the world's major exchange groups, faced a significant operational challenge stemming from its Stock Connect program. The rapid growth in northbound trades created a settlement bottleneck, as the disparity between Hong Kong's T+2 and mainland China's T+0 cycles forced international investors to complete complex, multi-party settlements within a narrow four-hour window. This sequential, manual process, complicated by time zones and disparate internal systems, was cumbersome, prone to errors, and limited the market's capacity for future growth.

Digital Asset provided the solution by powering the new HKEX Synapse platform with its Daml smart contract framework. This solution replaced the legacy sequential workflow with a modern, multi-party application that gave all participants real-time visibility and simultaneous instructions. The result was an automated, expedited post-trade process that reduced settlement risk and operational complexity, laying the foundation for HKEX to support continued surges in investor demand for China A-shares.

HKEX

Glenda So

Head of Post Trade