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- 1 Ripple to Showcase Real Estate Asset Tokenization Solution.
- 2 It will be shown as part of the Hong Kong Monetary Authority’s Inaugural e-HKD Pilot Programme.
- 3 The Ripple CBDC platform is a new Ripple CBDC product on which the pilot project will run.
Hong Kong authorities are looking for more retail use cases of CBDC. It is a series of three-level programmes.
HKMA e-HKD pilot program using new CBDC platform
The Hong Kong authorities have been scrounging for more practical and retail use cases of CBDC. The use cases can be the equity release of real estate assets with CBDC products. A new real estate asset tokenization solution will be displayed by Ripple in the Hong Kong Monetary Authority’s (HKMA’s) digital Hong Kong dollar (e-HKD). The company is also planning to reveal its new CBDC platform simultaneously.
With the help of the retail version of e-HKD CBDC, Ripple will elaborate on the equity distribution or release equity with tokenized assets. A reverse mortgage is another name for equity release. This method is a home loan where you don’t have to pay a loan as long as you are living there. The loans and interest are paid only when the house is sold, one permanently moves away or the owner dies.
Ripple mentioned in one of its statements that Tokenization can prove to be very fruitful for banks. They can help to smoothen the rough edges in the equity release process and increase its speed. This overall will benefit banks a lot.
As HKMA mentioned that the company is taking this a level up by getting into another dimension that will discuss the use cases like application, implementation, and design issues relating to e-HKD. The feedback and suggestions from the Rail 2 pilots will play a major role in any decision made by HKMA in regard to e-HKD in future.
The Ripple CBDC platform is a new Ripple CBDC product on which the pilot project will run. It will use the new private ledger with XRP Ledger technology and enhanced functionality that includes offline transactions and non-smartphone use.
It is not a one-day achievement. Ripple started its research on CBDC in 2017. HKMA concluded by saying that e-HKD may or may not have an important role to play in the current payment market but the advantages it can provide will be seen very soon and effectively.
About Ripple
Ripple is a crypto solutions company that views the world in a different way and reforms how the world moves and tokenises its value. Ripple is a successful company because its solutions are not just effective but transparent, fast and cost-effective as well. Ripple aims to motivate new business models and inspire people to dive into when they use crypto technology. They believe that they are learning with every new solution and a more sustainable global economy and planet.
About XRP Ledger
The XRP Ledger is led by a global developer community that is open-source, public and decentralized. It has maintained its consistency to be the best in the last 10 years.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
