Application of Blockchain Technology in Asset Securitization
Wenchuan Sun · 2022
Asset securitization is a structured financial product, and its risks exist in the complexity of the deal structure and the extension of the transaction chain, and simultaneously amplify the information asymmetry between the parties to the final transaction. This situation can lead to exogenous shocks that multiply risk. Companies often engage in asset securitization activities with specific portfolios of assets or cash flows they hold, such as accounts receivable, bank loans, etc., in order to obtain more funds for growth. The current blockchain technology has become an important technology choice for asset securitization with its advantages of decentralization, smart contracts, and tamper-proof. This paper introduces and analyzes the basic technical features of blockchain, and discusses the feasibility of blockchain application in asset securitization and the application process of blockchain securitization. The application of blockchain technology in the example of accounts receivable asset securitization is exemplified to clarify the effect of using blockchain technology and to provide design ideas and references for enterprises to apply blockchain technology to asset securitization.