The securitization process involves pooling various financial assets and converting them into marketable securities. This transforms illiquid assets, such as mortgages or loans, into liquid, tradable instruments like bonds or asset-backed securities. It allows originators to remove assets from their balance sheets, freeing up capital, and provides investors with access to diversified income streams. The process typically involves a special purpose vehicle that acquires the assets and issues the new securities.
Context
In the digital asset realm, the securitization process is being explored for tokenizing real-world assets, potentially creating new investment opportunities and improving market efficiency. News reports may discuss blockchain platforms facilitating the tokenization of assets like real estate or intellectual property. The application of blockchain to securitization could introduce greater transparency and fractional ownership to previously inaccessible asset classes.
Strategic RWA tokenization of $5.7M in private equity assets immediately unlocks fractional ownership and accelerates capital formation velocity for the enterprise.
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