Tokenization of Property Equity for HELOC Loans

This document is a technical report detailing the proposed implementation of a Home Equity Line of Credit (HELOC) facility by Fubon Bank in collaboration with Ripple. The facility aims to utilize hypothetical e-HKD and tokenized real estate to enable Hong Kong citizens to access funds based on the equity in their properties. It outlines the business process involved, starting with the minting of e-HKD, followed by the loan application process for existing Fubon Bank customers. The report describes how a CBDC wallet is created for users, and how tokenized property liens are managed throughout the loan lifecycle. It further discusses the draw and repayment periods, emphasizing the benefits of using e-HKD, such as increased efficiency, reduced manual processes, and enhanced access to lending markets. Key findings indicate that tokenization can significantly improve liquidity for consumers and streamline loan processes. The report concludes with next steps for developing a market-ready solution based on pilot findings.