What's Happening?
MQube has tokenised £1.3bn (US$1.73bn) of mortgage debt on the blockchain through its lending division MPowered. This marks the first time a European mortgage lender has moved residential mortgage assets onto an Ethereum Virtual Machine compatible chain. The company operates MPowered, which provides mortgages under the One Day Mortgage brand. The tokenisation process converts mortgage debt into digital tokens recorded on a distributed ledger. While equity, bonds, and real estate have been tokenised in previous transactions, this represents the first European deployment of the technology for mortgage debt.
Why It's Important?
The move by MQube signifies a growing interest in blockchain applications within financial services, where institutions have been exploring uses for distributed ledger technology in asset management and trading. Tokenising mortgage debt could lead to increased efficiency and transparency in the mortgage market, potentially reducing costs and improving access to capital. This development positions MQube at the forefront of a monumental shift in the industry, showcasing the potential of blockchain technology to transform traditional financial operations.
