The evolution of blockchain for asset-backed securities

Find out how investors and issuers are using blockchain and smart contractors to reinvent the way they buy and raise capital.

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What is securitisation?

Securitisation is the process whereby an illiquid asset is transformed into a security. As a security, it is now a fungible product that holds some monetary value, and it can be sold to investors.

Securities are created by an issuer and they represent a share of some assets, which an investor can purchase for a specified rate of return. This creates liquidity in assets by opening them up to investors - when they would have previously been unavailable for purchase.


Why blockchain?

Blockchain brings a wide range of benefits to the securitisation process - for both financial and security reasons. Blockchain technology streamlines the securitisation process to bring maximum efficiency, helps to keep costs low and transparency high, and provides regulation and security that offers peace-of-mind to investors.


The new securitisation lifecycle

The enhanced safety and lower costs associated with securisation on the blockchain encourages interest from more investors, because previously high-risk securities now have more transparency around them. It’s expected that this will cause trading volume to rise and costs to improve, with investors able to make sounder decisions without the worry of fraud.


The key benefits of STO


Blockchain, cryptocurrencies and regulations add credibility to STO that ICO couldn’t offer.

Improved structure

The infrastructure and intermediaries in traditional securities made them slow and expensive.


Security tokens can be programmed and are enforced by smart contracts.


Security tokens are open to anyone on the internet, regardless of their location.

Reduced manipulation

An open market with fewer intermediaries reduces the chance of manipulation.

More liquidity

STO investors are given a convenient way to liquidate their assets on specialised token exchanges.



We’re here to break down the technical terms to give issuers and investors a greater insight into the process. If you have any other questions, just get in touch.

A securitisation transaction is simply the trading of a security token from issuer to investor. By creating a token that is backed by real-life assets, issuers are able to create a standard investment instrument that can be sold.

In its most simplistic sense, there are two major steps in the securitisation process:

  • Step 1: A company with assets (the originator) pools any assets it wants to remove from its balance sheet into a reference portfolio. Assets are then sold to an issuer.
  • Step 2: The issuer turns these assets into tradeable security tokens that are sold to capital market investors.
Securitisation involves raising funds using asset-backed security tokens. Theoretically, any financial asset has the ability to be securitised, i.e. changed into a tradeable item of monetary value. Assets such as loans, mortgages and company shares can be securitised in this way.
Securitisation has a number of benefits for all involved parties, and with the addition of blockchain, regulation and safety are higher than ever. It enables companies to turn illiquid assets into liquid ones, and opens up opportunities for even small investors who may previously have been unable to participate, as a security can represent just a fraction of an asset.
Securitisation was first invented amongst banks in the U.S. in 1970’s, when they began securitising home mortgages. This was done to provide banks with a relatively secure way to distribute more mortgage loans to new homeowners. Securitisation extended to other types of assets on Wall Street in the 1980’s.

Security tokens - newly issued securities that operated on a distributed ledger.

Tokenised securities - a representation of a financial product that already exists.


The entire security token suite of services


We prepare your organisation to raise capital via STO.


Our team of blockchain experts provides the skills & technology needed for a successful launch.


We ensure your STO complies with regulations and all legal documents are in place.


Access our growing ecosystem of investors and brokers to open your security tokens to an expansive network.

Customer service

24/7 support for you before, during and after STO issuance.


Preparation of whitepapers and an innovative marketing strategy to accelerate your success.


Advice and support from blockchain consultants who specialise in capital raising via tokenisation.


A user-friendly platform where businesses can manage and distribute tokens.

Find out what securitization could do for you

As digital assets are evolving, keeping up means capitalising on a more secure way to raise funds or invest in businesses. Contact us or get started with Tribe today.