MQube has tokenised £1.3bn of mortgage debt on the blockchain.

The tokenisation of mortgage assets via an EVM compatible chain, sees MPowered and lending arm of MQube become what is said to be the first in Europe to have its mortgage debt tokenized on-chain.

The tokenisation of assets involves converting tangible or intangible assets such as real estate or art into digital tokens which are then recorded on a secure decentralised and immutable blockchain ledger or digital registry.

The securitisation of mortgage debt frees up money for banks and non-bank lenders that was otherwise tied down.

MQube says if more lenders begin to tokenise their assets on the blockchain, it could open up a new world for banks and building societies.

MQube chief executive Stuart Cheetham says: “The benefits of tokenising mortgage debt right now, is that it allows mortgage lenders to achieve data integrity, transaction security and audit traceability 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 opportunity for the mortgage lending industry is huge.”

“The plethora of benefits include the ability to transfer assets from one lender to another cutting out legal process in a remortgage case and saving thousands of pounds per remortgage transaction.”

“Most importantly, however, the tokenisation of mortgage debt, paves the way for a brand-new mortgage securitisation market via the blockchain which involves the pooling of mortgage debt into a tradable and investable mortgage security.”

“This is a remarkable development for our industry and we are proud to be at the forefront of this monumental shift. As a fintech business, we set out to reinvent the mortgage industry and now not only are we now 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.”