Fubon Bank To Tokenize The Real Estate With Ripple’s CBDC
The latest update says that Fubon Bank, one of Fubon Financial Holding Co.’s Subsidiary companies in Hong Kong, has officially announced its plans to introduce a pilot program specifically designed for real estate tokenization. The report says this program is expected to commence in the third quarter of 2023. It was also noted that the proposed project will use Ripple’s Central Bank-approved Digital Currency (CBDC) platform.
According to the report published by Crypto Basic’s Lele Jima, Xu Luosheng, the bank’s chief strategist and executive president, has made the details of the project public. According to Luosheng, the initiative’s first phase will be the bank (Fubon Bank) releasing an electric loan, which is expected to come in digital Hong Kong dollars.
From the information gathered on the bank’s operations, they will convert the conventional Hong Kong dollar into an electronic version, which will, in turn, exchange at a 1-to-1 global exchange rate. According to the available information, this will be for testing purposes only. The said digital is dubbed “e-KHD” and is slated to be issued to customers on a loan base.
Investigating this new project’s activities revealed that it allows customers to monitor Loan-To-Value (LTV) ratio in real time through their personalized e-KHD wallets. According to available information, the project’s second phase will enable customers to invest in real estate using the electronic version of their digital Hong Kong dollars.
Luosheng Hints Partnership, Ripple’s CBDC Director Issues Comment
While speaking to journalists on the tokenization initiative, Luosheng said that his company might partner with some real estate companies to make the industry accept the e-KHD as their preferred payment method. He further explained that this move is one of their many ways of introducing digital currency in the real estate industry.
Also, Jima has reported that the pilot project doesn’t involve the actual issuance of the said digital Hong Kong dollars – rather, it has become part of Hong Kong’s latest e-HKD pilot project. On the other hand, Fubon Bank and Ripple formed a common force sometime in May as part of the Hong Kong Monetary Authority’s (HKMA) e-HKD pilot project.
The partnership entails the two companies working together to achieve the real estate industry tokenization initiative using e-KHD. Also speaking on this development is Ripple’s CBDC Director, Ross Edwards. While commenting on this trend, Edward explained that the Ripple CBDC would allow a hypothetical e-KHD, a financial lending agreement, and tokenized real estate. He said all these functions will be done using XRP Ledger (XRPL).
Ripple Reaffirms Its Intention In Tokenization of The Real Estate Industry
Ripple has made known its intention to tokenize the real estate industry, which it believes is long overdue. Meanwhile, data from Markets Media has said that the tokenized asset industry is expected to hit $16 trillion by 2030; speculators have therefore linked the most recent move by Ripple to adjust itself to dominate as much industry as they can.
However, some industry analysts have started talking. A prominent social media cryptocurrency analyst with the Twitter handle Crypto Eri commented with, “To others, it’s a mere expansion initiative, but to Ripple, it is a business opportunity.” Recall that sometime in 2022, Ripple had formed a partnership with a Portuguese-based real estate firm, ProprHome, in what they said was to revolutionize the country’s real estate industry.
It has also been gathered that Ripple executives have commenced the promotion and awareness activities. Aside from the inauguration of the e-HKD Rail 2 Pilot Programme, they were also seen at the May 18th event hosted by the Chief Executive of the HKMA, Mr. Eddie Yue.
Antony Welfare, a writer and expert in Enterprise Blockchain, tweeted on July 7th about this development. In his tweet, Welfare raised the alarm about the increasing momentum of the CBDC in different parts of the world. According to Welfare, the team handling Ripple’s CBDC is working on the actual use case of a CBDC or stablecoin.
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