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

FIS and Intain are launching a blockchain-based marketplace on Avalanche to assist regional banks in securitizing loans and selling them directly to institutional investors. Named the Digital Liquidity Gateway, the platform tokenizes loans as NFTs, automates settlements, and integrates with FIS’s banking systems, which support over 20,000 institutions globally. This initiative aims to modernize credit markets by enhancing the accessibility of capital for community and regional banks, which often struggle to reach securitization markets. The platform will expedite loan transactions and is expected to enable hundreds of millions in loan transactions by year’s end. Loan tokenization is highlighted for its ability to increase transparency, as each NFT-backed loan is secured by documentation and verified data. This evolution in financial services seeks to streamline operations for smaller banks, providing them with quicker liquidity and more lending capacity in their local communities.

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