Fubon Bank Partners with Ripple for e-HKD Pilot Program: Exploring Real Estate Tokenization Solutions

By Brenda Mary Jul 29, 2023 @ 12:33pm CURRENT

Fubon Bank has partnered with Ripple, a blockchain company, to explore real estate tokenization solutions as part of the Hong Kong Monetary Authority’s (HKMA) eHKD pilot program.

Tokenization of real estate liens

Xu Luosheng, executive vice president and chief strategy officer at Fubon Bank Hong Kong, said the bank will conduct an initial test focused on customers requesting refunds.

The trial involves tokenizing mortgage liens and providing digital loans in Hong Kong dollars (HKD) using Ripple’s bespoke technology.

Customers who secure these loans can use the digital HKD for various payment scenarios, increasing the practicality and usage of the digital currency.

Xu Luosheng revealed in an interview that people looking for mortgages would be at the heart of this process. The bank will use Ripple’s central bank digital currency (CBDC) platform to digitize legitimate Hong Kong dollars at a fixed 1:1 ratio for testing purposes.

You might also be interested in: Exploring the early results of CBDC adoption beyond the hype

Customers can use Fubon’s eHKD e-wallet to access up-to-date information such as loan-to-value (LTV), stress test results and property valuations, simplifying the loan application process compared to traditional methods.

The pilot program does not include the issuance of digital Hong Kong dollars.

Instead, Fubon Bank will continue to offer its current mortgage lending services to customers who may wish to apply for a larger mortgage after the process.

Ripple and Fubon Bank recently announced their plan to use tokenization of real estate assets in the Hong Kong Monetary Authority’s first e-HKD pilot program.

Ripple’s CBDC director compares the technology to XRPL

The manager of Fubon bank emphasized that Ripple has been working on similar technologies for some time and has carried out various projects in different countries and regions.

Acknowledging the maturity of Hong Kong’s payments ecosystem, Xu Luosheng points to existing platforms such as FPS and Octopus. He proposed lending as the first practical application of the digital Hong Kong dollar to encourage its wider acceptance.

Customers can use Hong Kong dollar digital loans for a variety of purposes, including buying a home or investing, thereby encouraging the use of the currency.

Ripple CBDC Director Ross Edwards pointed out that the company’s approach uses XRP Ledger (XRPL)-like technology to integrate the hypothetical Hong Kong digital dollar into tokenized real estate and financial lending contracts.

Ripple actively works with various national central banks and participates in regional CBDC projects. In Bhutan, Ripple is currently testing use cases for retail, cross-border and wholesale digital currency payments. Meanwhile, Ripple is helping the Palau government create a national stablecoin backed by the US dollar.

Read more: Ripple is collaborating with the Central Bank of Colombia on CBDC development

Every trader who trades cryptocurrency on the Binance exchange wants to know how the value of coins is in order to make huge profits in a short period of time.

This article provides instructions on how to find out when and which coin will participate in the next pump. Every day the community is up Telegrammkanal Crypto Pump Signals for Binance publishes 10 free signals about the upcoming “pump” and reports on successful “pumps” successfully completed by the organizers of the VIP community.

Watch a video how to find out about the upcoming cryptocurrency pump and make huge profits.

These trading signals help to make a huge profit within a few hours after buying the coins published on the Telegram channel. Are you already making profits with these trading signals? If not, then try it!We wish you good luck in cryptocurrency trading and want the same profit as VIP subscribers of the Crypto Pump Signal for Binance channel.