Italy to Tokenize Non-Performing Loans

Blockchain startup BlockInvest will tokenize non-performing loans (NPL). The company will initially work with Crédit Agricole Italia for proof-of-concept, and then BlockInvest plans to start tokenizing Italian mortgages in default via smart contracts on Polygon.

Italian startup BlockInvest announced the launch of a project for tokenizing non-performing loans, in which the company, with the help of Crédit Agricole Italia, will do proof-of-concept and tokenize mortgages in default.

During the first phase, BlockInvest will perform a test issuance of tokenized NPLs with the assistance of 130 Servicing, a leading securitization service provider in Italy. The second phase will involve the issuance of tokenized mortgages in default held by investment firm Davis & Morgan Spa. The issuance of tokens will be carried out via smart contracts on the Polygon network.

The initiative’s primary goal is to increase the liquidity of NPLs. According to the Financial Stability Board (FSB), the Italian NPL market is estimated at tens of billions of euros, despite legislation introduced in 2016 that significantly reduced the possibility of default on certain types of loans in Italy.

Sergi Mata, Polygon Labs’ Head of BD, EMEA, and Latam, said Italy is a leader in Web3 innovation in Europe. His colleague Colin Butler, Polygon Labs’ Global Head of Institutional Capital, believes that tokenization will allow Italian markets to be at the forefront of financial innovation.

RWA tokenization is gaining momentum around the world. SME loans are tokenized in Germany, and investment funds are tokenized in the U.K. and Switzerland.

Сообщение Italy to Tokenize Non-Performing Loans появились сначала на CoinsPaid Media.