Avalanche (AVAX) News: Tokenized Loan Platform Aims to Modernize Small Bank Lending
FIS and Intain are launching a blockchain-based marketplace called Digital Liquidity Gateway on the Avalanche network. This platform helps regional and community banks securitize and sell loan portfolios directly to institutional investors by tokenizing loans as non-fungible tokens (NFTs) and automating settlements. The integration with FIS's core banking systems supports over 20,000 global institutions, streamlining asset-backed finance processes that can often be slow and costly. The Digital Liquidity Gateway is set to start onboarding banks and investors, with significant loan transactions expected by year-end, particularly in commercial real estate and aviation finance. This initiative aims to modernize credit markets with blockchain technology, making it easier for small banks to access liquidity and serve local communities more effectively. The tokenization of loans is intended to increase transparency and reduce risks associated with conventional loan tracking, offering investors a reliable view of the underlying assets backing their investments.
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