Structured Finance Platform Intain Opens Tokenized Marketplace for Asset-Backed Securities

IntainMarkets, a platform for trading tokenized asset-backed securities built as an Avalanche subnet, has begun operations.

A subnet is a sovereign network that defines its own rules for membership and tokenomics. They are composed of a group of validators – in this case, Avalanche validators – that work together to reach consensus on the state of one or more blockchains.

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Tokenization is a growing trend among financial institutions as it allows traditional finance players to attract more investors by using blockchain technology. According to a report by Boston Consulting Group (BCG) and Asia’s private market exchange ADDX, the asset tokenization industry will expand to a $16.1 trillion business opportunity by 2030.

Intain’s digital marketplace is intended to automate and integrate functions such as verification agent, underwriting, rating agency, servicer, trustee and the investor, according to the company. “Rather than replacing trust intermediaries, [IntainMARKETS] integrates them onto a singular platform and process to enable digital issuance and investment on-chain,” the company added.

Ava Labs, the company behind the layer 1 protocol Avalanche, said this is the first structured finance marketplace that combines tokenized issuance and investment with end-to-end administration on-chain.

Avalanche was the company’s choice of protocol because of its subnet architecture, which allows Intain to create a permissioned network for select financial institutions while complying with particular regulatory frameworks, Intain said in its statement.

“Attempts by the blockchain industry thus far have focused on tokenization, but for a financial instrument based on a complex structure, tokenization itself neither addresses the need of transparency nor efficiency,” said Siddhartha S, founder and CEO of Intain.

The company’s first platform, IntainADMIN, facilitates the administration of over $5.5 billion in assets, according to the press release. Intain was one of Wells Fargo’s 2022 “Innovation Challenge” finalists.

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