Avalanche (AVAX) News: Tokenized Loan Platform Aims to Modernize Small Bank Lending

FIS and Intain are launching the Digital Liquidity Gateway, a blockchain-based marketplace on Avalanche aimed at helping regional and community banks securitize and sell loan portfolios directly to institutional investors. This platform tokenizes loans into non-fungible tokens (NFTs), automates settlement, and integrates with FIS's core banking systems used by over 20,000 clients. With hundreds of millions of dollars in loan transactions expected soon, the initiative seeks to modernize asset-backed finance, particularly benefitting small banks that typically struggle to access capital markets. This new system enhances transparency by converting off-chain assets into traceable on-chain NFTs backed by loan documents, improving data integrity and reducing the risk of double-pledging. Overall, it represents a significant step for the traditional finance sector in embracing blockchain technology to streamline operations and enhance liquidity access for community banks.

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