• Ripple is participating in the digital Hong Kong dollar (e-HKD) Central Bank Digital Currency (CBDC) pilot program initiated by the Hong Kong Monetary Authority.
• As part of the program, Ripple will be showcasing a real estate asset tokenization solution and unveil its new CBDC platform.
• The company will collaborate with Taiwan’s Fubon Bank and other partners to demonstrate equity release using tokenized assets through a retail version of e-HKD CBDC.
Ripple to Showcase Tokenization with New CBDC Platform
Ripple, a leading crypto solutions company, has announced its participation in the digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program initiated by the Hong Kong Monetary Authority (HKMA). As part of the program, Ripple will showcase a real estate asset tokenization solution and unveil its new CBDC platform.
Equity Release Through Tokenized Assets
The company will collaborate with Taiwan’s Fubon Bank and other partners to demonstrate equity release using tokenized assets through a retail version of the e-HKD CBDC. Equity release, commonly known as a reverse mortgage, enables homeowners to access the equity in their properties, with repayment occurring only when the house is sold or the borrower passes away. According to Ripple, tokenization can streamline the equity release process, reduce friction, and enhance efficiency for banks.
Rail Exploring Use Cases & Strategies
The company will participate in the program’s second rail which aims to explore use cases, implementation strategies, and design considerations related to e-HKD CBDC as stated by HKMA. James Wallis from Ripple’s vice president of central bank engagements & CBDCs outlined that this integrated solution could serve as an industry first use case highlighting potential leveraging of a CBDC for real estate equity asset release.
Participants Include Top Financial Players
The HKMA outlined six use cases for exploration during this pilot program which include full-fledged payments, programmable payments offline payments tokenized deposits web3 transactions settlement of tokenized assets. 16 banks payment firms blockchain companies have been selected to participate in this pilot including state owned Bank of China China Construction Bank Industrial Commercial Bank HSBC Standard Chartered Visa Mastercard Ant Group’s Alipay etc,.
Ripple believes that this program would enable commercial banks in Hong Kong to offer their customers streamlined loan services more flexible payments options ultimately benefiting citizens allowing them access to improved financial products services offered via modern technology such as DLT & tokens