Ripple will participate in the Hong Kong Monetary Authority\u2019s (HKMA\u2019s) digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program by showcasing a real estate asset tokenization solution. The company will reveal its new CBDC platform at the same time.\u00a0<\/p>\n
Ripple will partner with Taiwan\u2019s Fubon Bank and others to demonstrate equity release 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 coming due only when the house is sold or the borrower dies.<\/p>\n
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 so-called second rail of the program, which \u201cwill take deep dives into use cases as well as application, implementation, and design issues relating to e-HKD,\u201d according\u00a0to the HKMA.<\/p>\n
\u201cExperiences coming out of the Rail 2 pilots will factor into any decisions by HKMA to go live with an e-HKD at a later date (Rail 3),\u201d Ripple vice president of central bank engagements and CBDCs James Wallis told Cointelegraph in a written Q&A.<\/p>\n