Are small and medium-sized banks going on-chain? FIS partners with Intain to promote AVAX loan securitization platform

[Blockchain Pulse] There is new activity in the fintech circle. FIS and Intain have recently launched a blockchain platform based on AVAX, specifically designed to help small and medium-sized banks package loans and sell them to institutional investors.

The platform called Digital Liquidity Gateway has a quite innovative gameplay: it turns loans into NFTs and settles directly with stablecoins like USDC, eliminating the cumbersome intermediary processes of traditional asset securitization. It's fast, and the costs have been significantly reduced.

The key is that FIS itself provides core system services to more than 20,000 financial institutions globally, and this platform directly connects to their banking systems. It has now begun to open access to banks and investors, and as planned, it is expected to facilitate several hundred million dollars in transactions by the end of the year - the first batch of projects is focused on the loan pools of commercial real estate and aviation financing.

To be honest, there have always been attempts to move traditional financial assets onto the blockchain, but there are not many that can secure endorsements from partners of the level of FIS. If it can really be implemented, it would indeed provide a new channel for liquidity for small and medium-sized banks, and also offer institutional investors a more transparent asset class. It all depends on the actual implementation results.