Leading enterprise blockchain and crypto solutions firm Ripple has been selected to showcase a real estate asset tokenisation solution as part of the Hong Kong Monetary Authority’s (HKMA) inaugural e-HKD Pilot Programme.
Alongside its partner Fubon Bank (Hong Kong), Ripple will demonstrate its tokenisation solution and equity release leveraging the e-HKD Pilot Programme which is a series of trials conducted with industry players to gain in-depth research into application, implementation, and design issues related to the e-HKD.
With real world asset tokenisation predicted to be a multi-trillion-dollar industry by 2030, tokenising commodities such as real estate is gaining traction within the financial services and government sectors as a core application. For most people, property is one main asset in their total wealth portfolio but unlocking the equity appreciation can be a costly, lengthy, and cumbersome process.
James Wallis, Ripple’s vice-president of Central Bank Engagements & CBDCs, said: “It’s a huge honour for Ripple to be one of the select few organisations participating in the HKMA’s e-HKD Pilot Programme. We now have the opportunity to demonstrate how real estate asset tokenisation could be brought to the citizens of Hong Kong and are confident that our fully integrated solution will be an industry-first use case demonstrating the power of leveraging a CBDC for real estate equity asset release.”
Ripple’s use case combining the e-HKD, tokenised real estate, and lending protocols will run on a private and secure ledger, built with the same technology as the XRP Ledger (XRPL). An open-source, energy-efficient and decentralised blockchain, the XRPL has been continuously operating for over 10 years.
Leveraging the power of blockchain technologies, such as the XRPL and Ripple’s Central Bank Digital Currency (CBDC) Platform, Hong Kong citizens can experience the release of equity faster and more efficiently.
Commercial banks can also expect to benefit from higher velocity of loan throughput and more flexible payments.
This story was written by Vishwesh Iyer
