Hong Kong-based Bank to Test Real Estate Tokenization on Ripple

Fubon Bank announced on July 24 that it will test real estate tokenization and loan issuance using Ripple's central bank digital currency (CBDC) platform in the third quarter of 2023, a local agency reported on July 24.
Fubon Bank Vice President Xu Luosheng stated that the test will take place in the form of tokenizing users' properties, taking them under mortgage and then lending. It was stated that the loan will be given to users via stablecoins pegged to Hong Kong Dollar (HKD) at a ratio of 1:1 using the Ripple CBDC platform.
In addition, according to the information provided, customers will be able to view the mortgage rate, stress tests and property value in real time using Fubon Bank's digital wallet.
Luosheng, who foresees that the loan allocation process will be shortened significantly through this method, stated that he still cannot give any definite information about the shortening period.
It was stated that the targeted customer group for the test were users who needed additional mortgage loans. However, it was underlined that this is a test and does not represent a real loan issuance. Users will be able to benefit from the services of the bank if they really need additional credit at the end of the testing period.
The vice president stated that user verification policies (KYC) and other security measures have not yet been added to the system, so they only run tests on existing mortgages.
Luosheng stated that these tests were carried out with the aim of increasing the usage scope of the eHKD dollar. The vice president said that they aim to tokenize all real estate, including title deeds, in the future.
The Republic of Palau announced on July 26 that they have made a new agreement with the payment company in their stablecoin projects that they are collaborating with Ripple.
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