Ripple Selected to Showcase Real Estate Asset Tokenization Solution
• Ripple, the provider of enterprise blockchain and crypto solutions, has been selected to showcase a real estate asset tokenization solution as part of the Hong Kong Monetary Authority’s (HKMA) inaugural e-HKD Pilot Programme.
• The HKMA has adopted a three-rail approach to prepare for the possible rollouts of the e-HKD.
• Ripple will demonstrate its use case under e-HKD Pilot Programme which will focus on real estate asset tokenization and equity release leveraging the e-HKD.
Real Estate Asset Tokenization Solutions
Real estate asset tokenization is gaining traction within the financial services and government sectors as a core use case. Ripple’s innovative solution combines the e-HKD, tokenized real estate, and lending protocols running on a private and secure ledger built with XRP Ledger (XRPL). This open-source, energy-efficient and decentralized blockchain has been continuously operating for over 10 years.
Benefits of Real Estate Asset Tokenization
By leveraging blockchain technologies such as XRPL and Ripple’s Central Bank Digital Currency (CBDC) Platform, citizens can experience more efficient equity release. Banks can also expect higher velocity of loan throughput and more flexible payments.
Unlocking Equity Increase in Value
Most people’s home becomes one of the main assets in their total wealth portfolio with potential increase in value over time. However unlocking this increase in equity has considerable friction making it costly, lengthy, and cumbersome. Blockchain technologies can help reduce these frictions while providing more efficiency when releasing equity from homes or other real estate assets.
Real world asset tokenization is predicted to be a multi-trillion dollar industry by 2030 due to its ability to provide faster turnaround times for releasing equity from homes or other real estate assets while reducing costs for banks through increased loan throughput velocity and payment flexibility for customers.