Italian Startup BlockInvest Targets Tokenizing Non-performing Loans

Italian Startup BlockInvest Targets Tokenizing Non-performing Loans

Actual-world tokenization of assets progresses in Italy, where the troubled loan market has increased to billions of euros.

BlockInvest, an Italian startup, is planning to tokenize non-performing loans (NPLs) in two phases. One phase will feature the proof-of-concept. The second phase will devote to tokenizing the Italian mortgages. 

BlockInvest targets the project to take off immediately in winning support. The startup indicates that the Italian non-performing loans market is estimated to carry a value extending to tens of billions dollars. In December, it peaked at €360B, roughly $391B. However, it has gone down since then.

BlockInvest Seeks Onchain Notes Tokenizing Non-performing Loans

As a run-up to its primary objective, BlockInvest and 130 Servicing, a Milan-founded securitization consultant, will collaborate in a proof-of-concept to offer native digital asset-founded securities notes directly on-chain.

Afterwards, it will partner with Davis & Morgan, a credit management firm based in Milan, to tokenize troubled real estate credits acquired by that firm. This will aid in tokenizing financing agreements as well as associated instruments.

According to BlockInvest, tokenization will offer improved liquidity, fractional ownership, and a better-managed and highly accessible market. BlockInvest is supported by the Credit Agricole Italia bank and utilizes the Polygon technology.

A statement revealed that bringing these assets on-chain seeks to reduce the effect of non-performing exposures on the institution’s financial stability. Additionally, the strategy aims to reinstate the loan portfolio’s health.

BlockInvest Targets Resolving Italian Non-performing Loan Issues

The Italian non-performing loan market has been a subject of concern for a long time. A January 18 report by the Financial Stability Board (FSB) showed that the legislature unveiled in 2016 has minimized the loans’ volumes. However, it mostly excluded intricate ‘less likely to pay’ loans pending.

The Financial Stability Board pushed the Italian government to keep fostering the market, enhance the court structure to enhance the settlement of NPLs and commit more human resources to the issue.

Italy possesses one of Europe’s highly established crypto regulatory models.

Written by
Don Blankenship

Don Blankenship, a crypto writing maestro, captivates with his astute analyses of blockchain phenomena. Synthesizing the dynamic world of digital currencies into insightful prose, Don's articles are a beacon for enthusiasts and professionals. His expertise establishes him as a definitive voice in crypto journalism.

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