MQube Pioneers European Mortgage Debt Tokenization on Blockchain
Guilford-based mortgage fintech, MQube, has announced the accomplished tokenization of £1.3 billion of mortgage debt on a blockchain.This achievement positions MPowered, MQube’s One Day Mortgage™ lender and lending division, as the first entity in Europe to tokenize mortgage debt directly on-chain, utilizing an EVM compatible chain.
Tokenization, the process of converting assets - including real estate and art – into digital tokens recorded on a secure, decentralized, and immutable blockchain ledger, has previously been applied to stocks, bonds, and real estate. However, this marks the first instance of mortgage debt being brought onto the blockchain within Europe, representing a significant advancement for both the mortgage and wider financial services sectors.
According to MQube, wider adoption of blockchain-based asset tokenization by lenders could fundamentally reshape banking and building society operations.
“The benefits of tokenising mortgage debt right now are data integrity, transaction security and audit traceability,” explains Stuart Cheetham, CEO of MQube. “But once the necessary regulatory and operational framework is in place – and there is still a huge amount of work to be done here – the possibility for the mortgage lending industry is huge.”
cheetham highlights potential benefits including streamlined asset transfers between lenders, eliminating legal processes and saving costs associated with remortgages – potentially thousands of pounds per transaction.Crucially, the tokenization facilitates the creation of a new mortgage securitization market via the blockchain, enabling the pooling of mortgage debt into tradable and investable securities.
This securitization process unlocks capital for lenders, increasing liquidity, reducing capital requirements, enhancing risk management, and ultimately allowing them to expand lending and business growth. Consumers stand to benefit from reduced borrowing costs and increased product choice.
“this is a remarkable development for our industry and we are proud to be at the forefront of this monumental shift,” Cheetham concludes. “As a fintech business,we set out to reinvent the mortgage industry and now not only are we delivering one day mortgages but we are seriously addressing how we can use the cutting edge of blockchain technology to transform the entire banking ecosystem.”
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