Fubon Bank, blockchain firm Ripple to explore real estate asset tokenisation in Hong Kong

They are aiming to make release of equity swifter and more efficient.

Fubon Bank Hong Kong, alongside blockchain and crypto solutions provider Ripple, have been selected to explore a real estate asset tokenization solution under the Hong Kong Monetary Authority’s (HKMA) e-HKD Pilot Programme.

The two firms are tasked with demonstrating the use case of e-HKD, with a focus on real estate asset tokenization and equity release.

The 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.

In a press release, Ripple detailed how the e-HKD will be applied in real estate asset tokenization. 

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“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,” Ripple said in a press statement announcing its participation in the e-HKD Pilot Programme. “The process can be costly, lengthy, and cumbersome.”

Ripple and Fubon Bank plan to leverage blockchain technology, with the aim of Hong Kong citizens experiencing a swifter and more efficient release of equity.

“Commercial banks can also expect to benefit from higher velocity of loan throughput and more flexible payments,” Ripple said in the press release.