Ripple Scores Yet Another Major Partnership• May 22, 2023 12:05 pm • Comments
Tokenization of real-world assets, particularly real estate, is a huge and important use case for cryptocurrencies and digital assets like NFTs.
It is estimated that by 2030, the value of the tokenized asset market will be in the tens of trillions of dollars. …
These innovations will unlock efficiency across all real-world assets, save investors and brokerages enormous sums of money, as well as help to make highly illiquid assets like real estate and home equity highly liquid.
Imagine a world where the deed to a house or a mortgage can be transferred and settled near instantaneously, in real-time, with real-time prices on an electronic exchange—this is the future of the real estate and home equity markets.
Ripple recently announced a partnership and a pilot program with Fubon Bank, a Taiwanese firm, to test an initiative known as the e-HKD program—a financial initiative that uses blockchain versions of the Hong Kong dollar to tokenize real-world assets such as real estate:
Ripple has been selected to showcase a key CBDC use case for the @hkmagovhk’s inaugural e-HKD Pilot Program with Fubon Bank.
— Ripple (@Ripple) May 19, 2023
President of Ripple, Monica Long, shared her own press release via Twitter celebrating the new partnership and outlining several interesting use cases for the crypto platform and Ripple’s various digital assets.
Tokenization of real-world assets (such as homes, bonds, equity, investment funds, etc) is primed to be in the tens of trillions by 2030 – I’m especially excited about the potential to bring all kinds of illiquid assets on-chain in the near future. 2/2
— Monica Long (@MonicaLongSF) May 19, 2023
Here’s the official press release from Ripple:
Ripple, the leader in enterprise blockchain and crypto solutions, announced today that it has been selected to showcase a real estate asset tokenization solution as part of the Hong Kong Monetary Authority’s (HKMA) inaugural e-HKD Pilot Programme.
The HKMA has adopted a three-rail approach to prepare for the possible rollouts of the e-HKD.
As a leading provider offering real world asset tokenization capabilities, Ripple alongside its partners Fubon Bank – a wholly owned subsidiary of Fubon Financial Holding Co., Ltd., one of the largest financial holding companies in Taiwan – will demonstrate its use case under e-HKD Pilot Programme, which will focus on real estate asset tokenization and equity release leveraging the e-HKD.
e-HKD Pilot Programme will see a series of pilots conducted with various industry players to gain in-depth research into application, implementation, and design issues related to the e-HKD.
With real world asset tokenization predicted to be a multi-trillion-dollar industry by 2030, tokenizing commodities such as real estate is gaining traction within the financial services and government sectors as a core use case.
Ripple’s innovative use case combining the e-HKD, tokenized real estate, and lending protocols will run on a private and secure ledger, built with the same technology as the XRP Ledger (XRPL).
The XRPL is an open-source, energy-efficient and decentralized blockchain that has been continuously operating for over 10 years.
For most people, their home becomes one of the main assets in their total wealth portfolio with the possibility of increasing in value over time.
However, unlocking this increase in equity has considerable friction. The process can be costly, lengthy, and cumbersome.
By 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.
“The Asia Pacific region has many forward-looking regulators such as the HKMA, who are looking to leverage the capabilities of blockchain technology.
It’s a huge honor for Ripple to be one of the select few organizations participating in the HKMA’s e-HKD Pilot Programme.
We now have the opportunity to demonstrate how real estate asset tokenization 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,” said James Wallis, Ripple’s Vice President of Central Bank Engagements & CBDCs.
As part of the inaugural e-HKD Rail 2 Pilot Programme, Ripple executives attended the commencement event on May 18th hosted by Mr. Eddie Yue, Chief Executive of the HKMA.
The crypto community and XRP investors celebrated the move as well:
Ripple joins Hong Kong CBDC pilot, partners with Fubon Bank
Ripple Labs has launched a new payment platform for a central bank digital currency in Hong Kong. It’s always been XRP the bridge currency Best believe! pic.twitter.com/Y1daNx2hNA
— XRP-Flare-United (@FarshadRouhani5) May 19, 2023
📢🚀XRP Community, let's drown out the FUD with facts! 💪 #Ripple has been chosen by the HKMA to showcase real estate asset tokenization solutions in the e-HKD Pilot Programme. We're partnering with Fubon Bank, one of Taiwan's leading banks, for this groundbreaking initiative.…
— WallStreetBulls (@w_thejazz) May 19, 2023
U Today adds:
Earlier this month, the company scored two major awards for its CBDC program.
Also, it released a one-stop platform for government-backed stablecoins that is already accessible in four countries. #Ripple News
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