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Ripple will participate in the Hong Kong Monetary Authority (HKMA) Digital Central Bank Digital Currency (CBDC) Digital Hong Kong Dollar (e-HKD) Pilot Program by introducing a real estate asset tokenization solution. At the same time, the company will introduce its new CBDC platform.
Ripple will partner with Taiwanese Fubon Bank and others to demonstrate the issue of shares with tokenized assets using the e-HKD retail version of CBDC. An equity release, also known as a reverse mortgage, is a practice where a lender allows a homeowner to access equity in their home, with the payment only payable if the home is sold or the borrower dies.
Ripple said in a statement that tokenization could reduce friction in the share issuance process and speed up banks. According to the HKMA, the company is participating in what it calls the second phase of the program, which “will dive deep into the use cases as well as application, implementation and design issues associated with e-HKD.”
“Our regulation will be tight”
Hong Kong Monetary Authority Chief Executive Eddie Yue explains what cryptocurrency companies should expect under a new licensing regime https://t.co/C6nWnRKtsU pic.twitter.com/hgpJr2mkjY
— Bloomberg TV (@BloombergTV) May 9, 2023
“The experience gained from the Rail 2 pilots will be factored into the HKMA’s decisions to launch e-HKD at a later date (Rail 3),” James Wallis, Ripple’s vice president of central banking and CBDC relations, said in a written letter to Cointelegraph. Questions and answers.
Related: Ripple-Based MoneyTap Adopted by Three Japanese Banks
The pilot project will run on Ripple’s new CBDC product, the Ripple CBDC Platform, using a new private ledger with XRP Ledger technology and advanced features including offline transactions and smartphone-free use. Wallis added:
“All pilot partner programs that Ripple announced earlier, including Montenegro, Palau, and Bhutan, will use the CBDC platform.”
Hong Kong started its CBDC study in 2017. “While it appears that e-HKD may not play a direct role in the current retail payments market, we believe that promising e-HKD use cases may emerge quickly,” the HKMA concluded. recent article.
