Last week, Hong Kong-based Fubon Bank unveiled plans for a real estate tokenization pilot with Ripple, the blockchain and crypto firm associated with XRP Ledger. The trial is one of a dozen projects previously announced by the Hong Kong Monetary Authority (HKMA) as part of the region’s central bank digital currency (CBDC) trials.
The test combines a simulated eHKD, tokenized real estate, and finance agreements to allow users to tokenize real-world assets as collateral for loans. While the Fubon Bank interview elaborated on what the trial would involve, it didn’t clarify why a CBDC would benefit this particular use case.
Fubon’s pilot is not the first to explore DLT or CBDC applications for real estate. Earlier this year, the Bank of England published the results of Project Meridian, which showcased a delivery versus payment (DvP) settlement of a house purchase, allowing it to eliminate the risk of one party handing over the money, and the other failing to deliver the asset.
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