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Tokenization of real estate in Hong Kong CBDC test run
Ripple’s central bank digital currency (CBDC) advisor, Anthony Welfare, said at the end of June that the Ripple team is focusing on tokenizing real estate assets in the CBDC and stablecoin space. bottom.
At the fintech conference UNCHAIN held in Romania, he presented a use case that combines the digital Hong Kong dollar (e-HKD), tokenized real estate, and financial lending protocols.
In that regard, he said he is also working on tokenizing real estate as collateral for loans.
#CBDCs are gaining traction globally and @Ripple The CBDC team are focusing in on Real world use cases for a CBDC or #stablecoinLast week I shared two real use cases at a CEE Fintech conference in Romania:#Tokenization is the Future of Real Estate
The pilot combines the… pic.twitter.com/OMe1ieq8d1
—Antony Welfare (@AntonyWelfare) July 7, 2023
background
In May, Ripple announced that it would participate in the “e-HKD pilot program” implemented by the Hong Kong Monetary Authority (HKMA) and develop a use case to realize the tokenization of real estate assets.
e-HKD is a CBDC for retail and is intended for use in online, in-store and face-to-face payments. 16 financial, payment, and technology companies, including Ripple, will participate in the program, and will work with experts to consider the practical application, implementation, and design of e-HKD.
Using its own CBDC platform and a private version of the XRP Ledger (XRPL), Ripple is collaborating on this pilot program.
connection: Ripple Participates in Hong Kong’s CBDC Pilot Program and Pursues the Potential of Tokenizing Real Estate Assets
What are CBDCs
A digital currency issued by the central bank of a country or region. It stands for “Central Bank Digital Currency”. The big difference from virtual currency is that CBDC is a legal tender. While it is expected to reduce costs and improve efficiency in currency management and settlement, there are many issues to be considered, such as protection of personal information and privacy, security measures, and impact on the financial system.
Cryptocurrency Glossary
Blockchain tokenization is generally expected to increase asset liquidity, accessibility, efficiency, transparency, and security.
In real estate investment, there are barriers to entry such as payment time, complicated paperwork, and high entry costs, but tokenization can reduce these barriers. It is a form that opens up new possibilities, such as expediting transactions and splitting ownership of real estate among multiple people.
Real Estate Token Case
In connection with Ripple, in November 2022, the real estate brokerage platform “ProprHome” using the XRP ledger was launched in Portugal.
The platform issues NFTs (Non-Fungible Tokens) called “DOCs (Digital Property Certificates)” to customers when buying or renting real estate. It can be used to prove the right to use the property.
In addition, “Propr (PRP)” will be issued as a token to evaluate real estate suppliers. Suppliers can obtain credit if they provide sincere customer service, and it can be used to pay for advertising on the platform.
connection: Ripple partner launches real estate transaction service with XRPL
In Japan, Nomura Securities is embarking on the digitization of real estate securities using blockchain “Quorum” for businesses.
The post US Ripple conducts demonstration experiment on tokenization of real estate assets appeared first on Our Bitcoin News.
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