Intain has launched the IntainMARKETS solution on the Avalanche public blockchain, enabling a tokenized marketplace for structured finance products.
The company already has an IntainADMIN service solution for asset-backed securities (ABS), including mortgage-backed securities. Its clients include his fourth largest trustees in the ABS sector, WSFS Bank and UMB, both of which use Intain to provide payment agency services. Wilmington Trust is a new client.
Intain has replicated a management solution servicing $5.5 billion in assets from the Hyperledger Fabric blockchain to the Avalanche public blockchain.
However, the Avalanche solution is on a permitted subnet, allowing Intain and its clients to control who can access the network and view transactions. Validators are chosen by the participants of the (sub)network, so it is possible to require validators to hold a license. Subnets do not need to use public tokens.
Asset-backed securities can be very complex and split into multiple tranches depending on the investor’s risk appetite. Combined with a security window of potentially 7 to 15 years, this makes this a cumbersome class of assets to monitor and report on. It is also relatively expensive if done the traditional way.
So there is a need for automation where IntainADMIN comes into play. Automation also means that instead of having a minimum ABS transaction size of $100 million, we can significantly reduce it by more than 10 times. With the launch of IntainMARKETS, ABS tokens are backed by on-chain management.
One interesting aspect is the possibility of reconciliation. While we are using traditional payments at this stage, Intain is looking at the Regulatory Responsibility Network and the USDC stablecoin as the most viable short-term solution.
Intain is not the first tokenized ABS solution, but it may have the largest scale in the US. Liquid Mortgage also provides payment data for mortgage-backed securities and uses public blockchain. Figure Technologies has issued its own tokenized ABS for mortgages on the Provenance blockchain.