Italian Startup To Tokenize Distressed Loans On Polygon

Addressing the billion-dollar distressed credit market, BlockInvest will tokenize non-performing loans through two projects.

Two new real-world tokenization projects are landing on Polygon. Italian startup BlockInvest aims to address the distressed loan market by tokenizing non-performing loans (NPLs) through two partnerships.

The first is a proof-of-concept developed in conjunction with 130 Servicing, one of Europe’s leading securitization firms. It will offer on-chain digital note issuance to issue natively digital asset-backed securities.

As part of its second project, BlockInvest will tokenize and fractionalize distressed real estate credits acquired by Davis & Morgan, an Italian firm with $100M in assets under management.

Both projects are being built on Polygon, with the network’s social media account saying that “Tokenization continues to rule the narrative.”

Real-world assets have been increasingly embraced by DeFi protocols over the past year, with tokenized Treasuries growing eight-fold since January 2023, according to data from rwa.xyz.

Italy’s NPL market has dropped from its peak of €360B in 2015 to €63B in 2023, according to a recent report by the Financial Stability Board, an international body that monitors and makes recommendations about the global financial system.