Ripple to participate in Hong Kong’s CBDC pilot program with real estate asset tokenisation solution

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18th May 2023 – (Hong Kong) Ripple, the blockchain-based payment solutions provider, has announced its participation in the Hong Kong Monetary Authority‘s (HKMA) digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program. Ripple will showcase a real estate asset tokenisation solution and reveal its new CBDC platform during the program.

As part of the pilot program, Ripple will partner with Fubon Bank, a Taiwanese bank, and other entities to demonstrate equity release with tokenized assets using a retail version of the e-HKD CBDC. Equity release, also known as a reverse mortgage, allows homeowners to access the equity in their homes, with payment due only when the house is sold or the borrower dies.

According to Ripple, tokenization can reduce friction in the equity release process and speed throughput for banks. The company will participate in the program’s second rail, which will focus on use cases, application, implementation, and design issues related to e-HKD. The HKMA stated that experiences from the Rail 2 pilots will factor into any decisions to go live with an e-HKD at a later date.

Ripple’s new CBDC product, the Ripple CBDC Platform, will power the pilot project. It will use a new private ledger with XRP Ledger technology and enhanced functionality, including offline transactions and non-smartphone use. James Wallis, Ripple’s vice president of central bank engagements and CBDCs, stated that the pilot project would provide valuable insights into CBDCs’ potential use cases.