Real-world asset tokenization advances in Italy, where the distressed loan market has ballooned to hundreds of billions of euros.
Italian startup BlockInvest will tokenize non-performing loans (NPLs) in two projects, the first of which will be a proof-of-concept, and the second will tokenize Italian mortgages in default. The Italian NPL market is worth tens of billions of euros, peaking at 360 billion euros in December 2015 ($391 billion at the time), but it has since reduced.
BlockInvest will partner with Milan-based securitization consultant 130 Servicing in a proof-of-concept to issue native digital asset-based securities notes directly on-chain as a run-up to its main goal. After that, it will work with credit management company Morgan & Davis, which is also based in Milan, to tokenize distressed real estate credits acquired by that company to enable tokenization of financing agreements and related instruments.
Related: Italian central bank backs DeFi tokenization project with Polygon, Fireblocks
