According to ChainCatcher, the Hong Kong Monetary Authority launched the eHKD pilot program in May this year to test the potential use cases of eHKD. A cross-industry alliance led by Hong Kong Telecom (06823), ZhongAn Bank, and Boston Consulting Group (BCG) completed the pilot test of "tokenized property-secured loans" and will submit a pilot program description to the HKMA at the end of this month and release a white paper after Hong Kong Fintech Week.
The alliance said that the overall trial process was smooth and believed that the plan would help reduce transaction costs and speed up the lending process. The cross-industry alliance also includes VSFG and paywith.glass.
According to the process design, users need to first open an account in the "simulated digital Hong Kong dollar" e-wallet provided by HKT Payment, a subsidiary of Hong Kong Telecom, and then jump to the E-Bet Financial interface in the application to apply for tokenization of their assets (in this case, real estate). After obtaining the property token, users can use part of the token to apply for a secured loan at ZhongAn Bank, and after the funds are issued, payment transactions are made using HKT's e-wallet. However, the loans currently issued can only be used for pre-specified purposes, such as education and medical care, to more effectively manage credit risks.