- Fubon Bank partners with Ripple for a real estate tokenization project.
- The initiative comes following the launch of a digital Hong Kong dollar pilot program.
- The test targets existing customers interested in mortgages.
Fubon Bank (Hong Kong) has revealed its plans to embark on a real estate tokenization journey in the third quarter. The bank is partnering with the renowned financial technology enterprise, Ripple, to revolutionize property transactions.
This initiative comes after the Hong Kong Monetary Authority launched a digital Hong Kong dollar (eHKD) pilot program. Xu Luosheng, the executive vice president of Fubon Bank, affirmed the upcoming test’s focus on repayment customers. It aims to streamline the process through Ripple’s ingenious technology that tokenizes property liens and facilitates loans in digital Hong Kong dollars dedicated to this experimental phase.
Notably, after securing loans, customers will enjoy the added perk of employing these digital Hong Kong dollars in other payment test scenarios. The endeavor primarily targets existing customers with a potential interest in mortgage ventures, leveraging the power of Ripple’s Central Bank Digital Currency (CBDC) platform.
In this endeavor, the bank converts legal tender Hong Kong dollars into a test-exclusive digital Hong Kong dollar at a 1-to-1 exchange rate, subsequently issuing eHKD loans to eager customers.
According to the report, a feature of this initiative is Fubon’s eHKD e-wallet, a gateway with real-time insights into their loan-to-value ratio (LTV), stress test results, property values, and other critical information.
Xu Luosheng, while acknowledging the challenge of quantifying the exact time required, predicts that the entire loan disbursement process will significantly outpace traditional channels. He further emphasizes Ripple’s extensive experience, not only in the ongoing development of related technologies but also in successfully executing similar projects worldwide.
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