Intain launches new Asset-Backed Security (ABS) platform
Coindesk • February 02, 2023
Intain Inc. has launched IntainMarkets, a tokenized asset-backed securities platform that has been built as an Avalanche Subnet. The platform aims to automate and integrate various functions such as verification agent, underwriting, rating agency, servicer, trustee, and investor into one singular platform. Intain chose the Avalanche protocol due to its subnet architecture, which allows for a permissioned network for select financial institutions while still complying with regulatory frameworks. The first platform, IntainADMIN, is already managing over $5.5 billion in assets.
IntainMarkets is the first structured finance marketplace to combine tokenized issuance and investment with end-to-end administration on the blockchain, making it a significant player in the asset tokenization industry. The platform's innovative approach was recognized as a finalist in Wells Fargo's 2022 Innovation Challenge.
IntainMarkets addresses the core challenges faced by the structured finance market, which built $2T in new mortgage-backed and asset-backed securities in the previous year, according to SIFMA. The platform automates and incorporates the activities of key stakeholders in structured finance, including the rating agency, servicer, trustee, and investor.
The choice of the Avalanche protocol was due to its subnet framework, which allows financial institutions to build permissioned networks that comply with specific regulatory requirements. The IntainMarkets subnet has a U.S.-hosted framework that keeps data locally and requires validators to be authenticated U.S. persons.
Intain aims to create blockchain-enabled digital platforms for greater clarity and effectiveness in capital market transactions, with a focus on structured finance. The company has received support from financial institutions and has received backing from Ava Labs and the greater Avalanche ecosystem. According to John Wu, President of Ava Labs, they are thrilled to be working with IntainMarkets as it is the first structured finance marketplace.
The news of IntainMarkets beginning operations is significant because it's one of the early markers of a new era in the tokenization of assets. Tokenization is the process of converting real-world assets into digital tokens that represent ownership and economic worth. This has the potential to upend several industries, particularly real estate and finance. Despite the potential benefits, the technology is still in its infancy and there are hurdles along the way before it can be widely adopted. IntainMarkets could become one of the enablers to overcome these challenges.