Market Insight by Felice Giuggioli - The future of securitisation and tokenised assets

Securitisation through tokens is a process aimed at creating digital financial securities negotiable on blockchain, which has been gaining ground in the banking industry for some years now.


Securitisation is the process of converting contractual rights into negotiable securities, and by which one can package the legal effects of a defined contractual scheme to third parties not originally involved in the underlying legal construct.


Usually linked to prominent examples like asset-backed or mortgage-backed securities, the securitisation technique plays a much larger and basic role within the financial markets. Being simply a repackage of receivables into tradable securities, it can be applied to any underlying valid and enforceable legal agreement. A standard bond is an example of securitisation whereby the underlying debtor-creditor relationship is securitised into a note.