Fubon Bank (Hong Kong) and Ripple to Pioneer Real Estate Tokenization with Digital Hong Kong Dollar (eHKD) Platform
Fubon Bank (Hong Kong) has unveiled its ambitious plan to venture into the realm of real estate tokenization during the third quarter. Collaborating with the esteemed financial technology enterprise, Ripple, the bank aims to revolutionize property transactions.
This strategic move comes on the heels of the Hong Kong Monetary Authority’s launch of a pilot program for the digital Hong Kong dollar (eHKD). Xu Luosheng, the Executive Vice President of Fubon Bank, confirmed that the upcoming trial will primarily focus on repayment customers. The objective is to streamline the process using Ripple’s cutting-edge technology, which involves tokenizing property liens and facilitating loans in digital Hong Kong dollars exclusively for this experimental phase.
A noteworthy benefit for customers who secure these loans is the option to utilize the digital Hong Kong dollars in other payment test scenarios. The initiative primarily targets existing customers with potential interest in mortgage ventures, capitalizing on the power of Ripple’s Central Bank Digital Currency (CBDC) platform.
The bank’s approach involves converting legal tender Hong Kong dollars into a test-exclusive digital Hong Kong dollar at a 1-to-1 exchange rate, enabling the issuance of eHKD loans to enthusiastic customers.
A key highlight of this initiative is Fubon’s eHKD e-wallet, which serves as a gateway providing real-time insights into their loan-to-value ratio (LTV), stress test results, property values, and other critical information.
While Xu Luosheng acknowledges the challenge of quantifying the exact time required, he confidently predicts that the entire loan disbursement process will far outpace traditional channels. He also underscores Ripple’s extensive experience, not only in ongoing technological developments but also in the successful execution of similar projects worldwide.
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