Italy’s BlockInvest announced plans to tokenize two different sets of non performing loans (NPL). It is partnering with asset backed security (ABS) firm Centotrenta Servicing to issue tokenized securities backed by non performing loans. Separately, it is partnering with a small bank Davis & Morgan to tokenize non performing mortgages. Both sets of tokens will be issued on the Polygon public blockchain.
Meanwhile, BlockInvest is backed by Credit Agricole Italia. According to BlockInvest, Italy has €300 billion ($327 billion) in non performing loans, so there’s plenty of market potential.
There are several drivers of tokenization. One is the efficiencies resulting in lower costs, making smaller issuances or denominations possible. This so-called fractionalization has the potential to improve liquidity.
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