Tokenized Mortgages

Definition ∞ Tokenized mortgages are representations of mortgage loans as digital tokens on a blockchain. This process converts traditional mortgage debt into a divisible, transferable digital asset. It facilitates fractional ownership and streamlines the secondary market for real estate debt. These tokens aim to enhance transparency and liquidity in property finance.
Context ∞ The concept of tokenized mortgages is gaining traction in discussions about real estate finance innovation and the broader tokenization of real-world assets. News often explores the legal and regulatory frameworks required for their adoption and the potential for increased access to capital markets. These digital instruments represent a significant shift in how property debt can be managed and traded.