FAQHow can securitization benefit from blockchain technology?
Blockchain will reduce the cost of securitization, improve asset monitoring and unlock smaller deal sizes. With blockchain, third-party intermediaries can be taken out of the process, eliminating extra costs through reduced auditing and streamlined reporting. Repetitive processes such as waterfall calculations can be automated by smart contracts, reducing the administrative costs in a securitization. Blockchain technology enables a higher level of transparency, allowing investors to more easily inspect underlying assets and monitor ongoing performance. This will allow for more accurate pricing and provide more accurate data for audits and analysis, increasing investor confidence. Overall, by using blockchain in securitization, processes become streamlined, cheaper, and easier to track and analyze, improving trust and efficiency for securitizations. Reduced costs also make smaller securitizations cost-efficient, improving access to the financial ecosystem.