Ripple to Demonstrate Tokenization Using New CBDC Platform in HKMA e-HKD Pilot Program

Ripple will participate in the Hong Kong Monetary Authority’s (HKMA) Digital Hong Kong Dollar (e-HKD) Central Bank Digital Currency (CBDC) pilot program by demonstrating a real estate asset tokenization solution. The company will reveal its new CBDC platform at the same time.

Ripple will partner with Taiwan’s Fuban Bank and others to demonstrate equity issuance with tokenized assets using a retail version of the e-HKD CBDC. Equity release, also known as a reverse mortgage, is the practice of a lender letting a homeowner access the equity in their home, with payment due only when the home is sold or the borrower dies.

Tokenization can reduce friction in the equity release process and speed throughput for banks, Ripple said in a statement. The company is participating in the program’s so-called Second Rail, which will “deep dive into application, implementation and design issues, along with use cases related to e-HKD,” According To HKMA.

“The experiences coming from the Rail 2 pilots will factor into any decision by the HKMA to go live with e-HKD at a later date (Rail 3),” Ripple Vice President of Central Bank Engagement and CBDC James Wallis told Cointelegraph in a written statement. Told in Q&A.

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The pilot project will run on Ripple’s new CBDC product – the Ripple CBDC Platform – which will use a new private ledger with XRP ledger technology and enhanced functionality including offline transactions and non-smartphone usage. Wallis added:

“All previously announced pilot program partnerships by Ripple, including Montenegro, Palau and Bhutan, will leverage the CBDC platform.”

Hong Kong started its CBDC research in 2017. “While it appears that e-HKD may not have an imminent role in the current retail payments market, we believe that potential use cases for e-HKD may emerge quickly,” HKMA concluded In a recent paper.

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