Ripple Labs is working on a pilot program with Fubon Bank Hong Kong to offer property equity access to residents.

XRP cryptocurrency developer revealed that the collaboration is part of the e-HKD pilot project. Ripple and Fubon Bank were selected to demonstrate use cases for tokenized asset settlement, he added.

This is a very proud moment for the Ripple#CBDCteam & our partners. We have worked together on a proof of concept of a hypothetical e-HKD Pilot Program for the#HKMAto help realize home equity. 👇 https://t. co/xvp6o1asMr

— Mary C. Hall (@SystemsandTech) October 31, 2023

Under the proposed solution, the partners use “state-of-the-art technology” to offer Home Equity Line of Credit (HELOC) to citizens. The collective goal of this venture is to address the growing demand for tokenized real estate equity.

The HELOC pilot project also saw participation from five major players, including Hex Trust, Stratford Finance, KodeLab, BCW and TOKO.

e-HKD for Asset Settlement

E-HKD is Hong Kong's central bank digital currency (CBDC), which was launched in May. The regulator – the Hong Kong Monetary Authority (HKMA) – highlighted that e-HKD has the potential to complete payments faster and more cost-effectively.

“The hypothetical integration of e-HKD into a HELOC facility could potentially offer many benefits,” the company said. For example, users benefit from a simplified online platform, receiving faster loan approval and around-the-clock access to property equity.

The solution also increases efficiency with end-to-end cryptography on the operational side, enabling real-time reporting and eliminating manual processes.

“Potential developments include full tokenization of property title deeds, expanding the trial to broader lending markets, and exploring international implementation.”

Key Findings

The e-HKD pilot program notes that customers will receive simulated access to the HELOC function through the bank's app. “Once received, an e-HKD wallet is automatically created and a tokenized version of the property is allocated to the customer.”

The trial also offers flexible withdrawals, allowing customers to gain 24/7 control over e-HKD funds.

Ripple Labs added that it will expand its HELOC trial use cases based on the findings.

“Potential developments include full tokenization of property title deeds, expanding the trial to broader lending markets, and exploring international implementation.”