Ripple Labs will launch an initiative to transform the real estate market using tokenization and CBDCs.
Ripple Labs is actively exploring options to expand the use of tokenized assets in the real estate market. Antony Welfare, CBDC Adviser at Ripple, during a FinTech conference in Romania, explained how the team plans to make this happen.
Specifically, he talked about the launch of a pilot program involving Hong Kong’s CBDC, which the company is directly involved in the development of. The initiative will test the possibility of getting a loan in digital Hong Kong dollars (e-HKD) secured by tokenized real estate. All transactions under the pilot project will be conducted on the Ripple CBDC Platform.
Welfare said the project is the company’s first step in overcoming existing barriers to adopting blockchain in real estate. He noted that successful initiatives on tokenizing real estate and expanding opportunities to use such assets could simplify transaction processes, which will positively affect market liquidity.
It’s worth noting that despite the ongoing uncertainty in the SEC’s lawsuit against Ripple, the company continues to grow. According to a report by Messari analysts, XRP’s market cap increased by 42.5% to $24.8 billion in 2023. Analysts also note the growth in the number of transactions to buy NFTs on the XRP platform and the growth in the number of new XRPL addresses, which reached 138,790.
The report points out that much of the positive impact on the Ripple ecosystem is due to the expansion of XRPL sidechains. Thus, XRP Ledger revenue in Q2 2023 amounted to $188,376, which is 220.3% more than in Q1.
Ripple is cooperating with the Colombian government to study the possibility of applying blockchain technologies in the country and with the Canadian authorities to train blockchain specialists.
