All termsRWA Asset ClassesWorth knowing
Tokenized Loans
Tokenized loans use blockchain based tokens or infrastructure to represent interests in loans, loan portfolios or the rights to receive payments from borrowers. The underlying debt still exists according to the legal terms of the lending arrangement.
Why it matters to you
Tokenization can make loan interests easier to administer, divide or potentially transfer. But the investment ultimately depends on borrowers making their payments. Credit quality, collateral, loan terms and enforcement remain more important than the technology used to represent the loan.
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