Definition ∞ Mortgage-backed tokens are digital assets representing fractional ownership or claims on a pool of mortgage loans. These tokens digitize traditional mortgage-backed securities, allowing for easier transfer and fractionalization on a blockchain. They aim to enhance liquidity and accessibility for real estate investment. Their value is derived from the underlying mortgage payments.
Context ∞ The emergence of mortgage-backed tokens is a developing area within real-world asset tokenization, often appearing in news about the convergence of traditional finance and blockchain. Discussions center on regulatory hurdles, legal frameworks for securitization, and the potential for increased transparency and efficiency in real estate markets. These tokens represent a novel approach to financing and investment.
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