Tokenized mortgages can prevent another housing bubble crisis, says Casper exec

The 2008 financial crisis was a devastating time for many, as the collapse of the United States real estate market caused ripple effects impacting the employment and livelihoods of millions of people.

However, he said that these products are not being “used productively” by the clients yet, but Nucleus is seeking to find new clients that can benefit from the technology.

Other tokenized mortgage solutions

Kubli is not the only expert to tout tokenized mortgages as the solution to financial crises. Security Token Advisors’ head of research, Peter Gaffney, has written a blog post making a similar argument. He claims that if mortgages undergo “double tokenization,” with mortgage tokens wrapped inside of a larger token to create a tokenized mortgage-backed security, this will “provide transparency to not only the pricing and ratings of the MBS itself, BUT also transparency and ratings to the underlying mortgages.”

Gaffney claims that Security Token Advisors “has seen several promising clients that are working to bring the proper technology to this industry” and will announce these initiatives “as they come to fruition.”

Cointelegraph has reached out to Security Token Advisors for comment but has not received a response by the time of publication.

Several researchers have recently attempted to tokenize various aspects of the mortgage industry. In March 2022, Cointelegraph Research revealed that real estate had become the leading securitized blockchain asset. In June, Citigroup released research suggesting that an increasing number of mortgages may be collateralized with crypto assets, although the investment bank warned that this practice might carry heightened risks.