Financial technology provider FIS and structured finance platform Intain are rolling out a blockchain-based marketplace built on that enables regional and local banks to securitize and sell loan portfolios directly to institutional investors, the firms told CoinDesk.
The Digital Liquidity Gateway, as it’s called, tokenizes loans as non-fungible tokens (NFTs), automates settlement, including with stablecoins like USDC, and removes layers of middlemen that often make asset-backed financing slow and expensive. It is integrated with FIS’s core banking systems, providing software and payment infrastructure to more than 20,000 customers worldwide.
The platform is already on board with banks and investors, with hundreds of millions of dollars in loan transactions expected by the end of the year, starting with loan pools tied to commercial real estate and aviation financing, the companies said.
The initiative fits into a broader shift as asset managers, banks and fintechs place assets on blockchain rails in a process called tokenization of real-world assets (RWA). While many of these efforts focus on large institutions, Intain and FIS target the long tail of community and regional banks that finance a large portion of local small business lending but rarely reach securitization markets.
“These small banks are remote from most capital market flows,” John Omahen, head of digital assets at FIS, said in an interview. “They originate loans and sit on them. They don’t have the expertise to structure deals or reach out to investors. What we’re doing is creating a place where these assets can meet demand and capital can move more efficiently.”
Loan tokenization to increase transparency
Recent failures and controversies, including those at auto lender Tricolor and auto parts maker First Brands, have highlighted how weak data controls and opaque loan tracking can lead to double mortgages, mispricing and investor losses.
Digital Liquidity Gateway’s key feature is loan tokenization, where each loan is converted into a non-fungible token (NFT), supported by loan documents, data from FIS systems and third-party verification. Intain’s AI engine reconciles documents and ensures data accuracy before minting NFT, which then becomes traceable and tamper-proof.
“Suddenly what was an off-chain, untraceable asset is now on-chain,” Siddhartha, CEO of Intain, said in an interview. “This means that if I’m an investor in a tokenized asset-backed security, I can zoom in and see the hundreds of individual loans backing it, with the assurance that they’re registered on the chain and can’t be double-pledged.”
The platform highlights how traditional financial institutions (TradFi) can lean into blockchain to streamline operations and open new markets. For regional banks, this can mean faster access to liquidity, less paperwork and more capacity to lend in local communities.
“Asset-backed financing is all about capital flows,” Omahen said. “This platform helps banks free up balance sheet capacity so they can make more loans and better serve their communities.”
Read more: Japan’s $2T payment provider TIS rolls out multi-token platform with Avalanche
