• Ripple 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).
• The company will showcase a real estate asset tokenization solution and unveil its new CBDC platform.
• 16 banks, payment firms, and blockchain companies have been selected to participate in the pilot program.
Ripple Joins e-HKD CBDC Pilot Program
Ripple 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.
Real Estate Tokenization Solution
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.
Explored Use Cases
The HKMA outlined six use cases to explore during the pilot program: full-fledged payments; programmable payments; offline payments; tokenized deposits; web3 transactions; and settlement of tokenized assets. These use cases are aimed at helping commercial banks in Hong Kong offer their customers streamlined loan services and more flexible payment options.
Participating Entities
16 banks, payment firms, and blockchain companies have been selected to participate in this pilot program including entities such as HSBC, Standard Chartered Bank , Visa , Mastercard , China Construction Bank , Industrial and Commercial Bank of China , Ant Group’s Alipay etc .
Conclusion
Ripple believes that this pilot program will enable commercial banks in Hong Kong to offer their customers streamlined loan services and more flexible payment options using tokenized assets . This initiative aims to highlight the potential of leveraging a CBDC for real estate equity asset release .