The newly launched MBSTokenTM seeks to bring stability, transparency, and liquidity to a $11 trillion mortgage-backed securities market.

Asset Token Ventures recently launched MBSTokenTM, a real-world asset (RWA) token that provides access to the mortgage-backed securities (MBS) market.

At the core of this initiative are two parallel funds: MBSToken ITM for non-US investor, and MBSToken IITM for US investors. By leveraging blockchain technology, ATV aims to democratise access to institutional-grade MBS-backed assets and modernise the fixed-income investment landscape.

Key advantages of the MBSTokenTM include:

  • High-Quality Backing: MBSTokenTM is collateralised by pools of mortgage-backed securities
  • Tax Efficiency: ATV’s USVI-based funds qualify for a 90% income tax exemption that allow investors to defer taxable appreciation
  • Blockchain Transparency: Transactions are recorded on an immutable ledger, providing real-time insight into asset performance
  • Enhanced Security: MBS holdings are structured into bankruptcy remote, stand-alone funds, providing an added layer of investor protection
  • Global Access and Liquidity: MBSTokenTM allows institutional accredited investors and qualified purchasers worldwide to participate in the US mortgage-backed securities market 24/7

The $11 trillion US mortgage-backed securities market has historically been complex and inaccessible. The team hopes that MBSTokenTM democratises the market and bridge traditional financial structures and blockchain technology.

The launch of the RWA asset also aligns with a broader industry trend as major financial institutions increasingly explore tokenisation as a means to unlock liquidity, reduce costs, and improve market efficiency.

Paul Talbert, Co-Founder and Managing Director of ATV, said, “We believe tokenisation will redefine how capital is deployed in traditional markets. MBSTokenTM is the first step toward a more inclusive and efficient financial ecosystem, one that integrates the best of institutional finance with blockchain’s transformative potential.”

“The fixed-income market, particularly MBS, is ripe for innovation,” said David Robnett, Co-Founder and Managing Director of ATV. “We are bringing institutional-grade MBS investments onchain, unlocking liquidity, improving transparency, and offering investors a seamless way to gain exposure to one of the most important financial markets.”

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