According to news reports, the Hong Kong Monetary Authority (HKMA) recently announced the launching of its e-HKD pilot program. In addition, the authority has chosen the Ripple crypto platform to display its real estate asset tokenization innovation on the new program.
The newly launched e-HKD pilot project, according to the report, is a program that encompasses different payment and settlement innovations. Examples include programmable fees, tokenized deposits, full-fledged settlements, offline charges, payment of tokenized assets, and payment of Web3 transactions.
Recent reports revealed that tokenizing commodities, like real estate, are now gaining wide adoption in government sectors and financial institutions. In addition, experts predicted that tokenization of real-world assets would be a multi-billion dollar enterprise for years to come.
Ripple Partners With HKMA To Showcase Its New Innovation
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According to reports, the new Solution built by Ripple would help to run the e-HKD, lending protocols, and tokenized real estate on a secure and private ledger created with the same components as the XRP Ledger (XRPL).
In addition, the e-HKD Pilot project focuses on equity release and real estate property tokenization. Hence, it would allow Ripple and its partners to showcase the innovation provided by the crypto platform.
Leveraging the blockchain technology behind the XRP ledger, the new solution would enable Hong Kong users to witness the faster and more efficient release of equity. In addition, the high speed of loan executions and the flexible payments provided by the solution would immensely benefit commercial banks.
James Wallis, the VP of CBDCs and Central Bank Engagements, stated in a recent interview that Ripple was highly honored to be part of the few firms that would perform at the e-HKD Pilot event organized by the Hong Kong Monetary Authority.
He continued that the firm has the opportunity to show the Hing Kong citizenship they can benefit from tokenized real estate properties. Wallis ascertained that the fully integrated solution would be first used by industry to display the prowess of leveraging a CBDC to release a real estate equity asset.
For instance, homeowners reportedly have challenges releasing equity as it can be costly, complex, and slow. However, with the tokenization method Ripple offers, homeowners would be able to release their equity quicker and more efficiently.
In addition, the solution would help increase the speed of loan throughput, enabling flexible payments.
Ripple Recently Bought Metaco Exchange
Meanwhile, a recent report showed that Ripple bought Metaco, a crypto exchange and tokenization tech provider based in Switzerland. The new platform acquisition would help Ripple expand its business and reach more Hong Kong customers, offering tech to customers to store, issue, and settle tokenization issues.
In addition, the acquisition would help Metaco to experience a rapid growth trend as it gains access to Ripple’s customer base and sufficient capital to solve new issues. Also, it would acquire the resources to help it stick with its aim of serving banking and institution
The President at Ripple, Monica Long, stated that Ripple is fast becoming the leading crypto platform that traditional finance firms can use for any crypto integration and blockchain innovation. He added that Ripple uniquely positioned itself to manage the institutional crypto custody market.
According to the report, Custody is a crucial component of the required business crypto services. In addition, Ripple announced that it is the sole shareholder of the Metaco platform. It added that the newly acquired firm would continue to work under Adrien Treccani.