[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Chris_OG [@Chris_0x1](/creator/twitter/Chris_0x1) on x 1733 followers Created: 2025-07-10 19:40:11 UTC What’s Securitization? The Old-School Way😎🤝 Securitization is like a financial smoothie blender. Let’s say a bank has thousands of home loans. Each loan is like a fruit, valuable but hard to sell individually. So, the bank tosses them into a blender, mixes them up, and creates a “security” (think: a bond) that investors can buy. This security represents the cash flows from all those loans. For example, mortgage-backed securities (MBS) bundle home loans into a single product, and investors get paid as homeowners make their mortgage payments. It’s been a cornerstone of global finance for decades, with a market worth over $XX trillion Sounds great, right? Well, not so fast. Securitization has some quirks: 💎 It’s Complex: Bundling assets involves layers of intermediaries, banks, rating agencies, and lawyers. This makes it slow and expensive. 💎 It’s Opaque: Investors often don’t know exactly what’s in the “smoothie.” (Remember the 2008 financial crisis? Those murky mortgage-backed securities were a big culprit.) 💎 It’s Exclusive: Only big players like pension funds or hedge funds can afford to buy these securities, leaving smaller investors out. 💎 It’s Rigid: Once bundled, you can’t easily tweak or split the assets further. It’s a one-size-fits-all deal. Securitization is like a walled garden, great for institutions, but not so friendly for the average person or small business looking to unlock value from their assets. Enter Tokenization: The New Kid on the Block🙂 Now, let’s talk about tokenization, the tech-forward, blockchain-powered approach that’s turning heads. Instead of blending assets into a smoothie, tokenization is like slicing a cake into precise, digital pieces. Each piece (a token) represents direct ownership in a specific asset, like a house, a painting, or even a rare vintage car. These tokens live on a blockchain, a secure digital ledger that records who owns what, and they can be traded instantly, globally, and transparently. Here’s why tokenization is a game-changer: 🩵 Fractional Ownership: You don’t need to buy the whole villa. You can buy a $XXXXX token representing a tiny piece of it. This opens up investments to everyday people. 🩵 Liquidity: Tokens can be traded 24/7 on digital exchanges, unlike traditional assets that might take months to sell. 🩵 Transparency: Blockchain records are public and unchangeable, so you know exactly what you’re buying and who owns it. 🩵 Programmability: Tokens can have smart contracts, think of them as tiny computer programs baked into the token. They can automate things like paying dividends or enforcing legal rules. Tokenization doesn’t just bundle assets; it individualizes them, making them more accessible and flexible. For example, @Novastro_xyz tokenized a commercial property, splitting it into thousands of tokens. Small investors from around the world could buy in, and the property’s rental income was automatically distributed to token holders via smart contracts.  XX engagements  **Related Topics** [home loans](/topic/home-loans) [collateralized debt obligations](/topic/collateralized-debt-obligations) [Post Link](https://x.com/Chris_0x1/status/1943394841968402552)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Chris_OG @Chris_0x1 on x 1733 followers
Created: 2025-07-10 19:40:11 UTC
What’s Securitization? The Old-School Way😎🤝
Securitization is like a financial smoothie blender. Let’s say a bank has thousands of home loans. Each loan is like a fruit, valuable but hard to sell individually.
So, the bank tosses them into a blender, mixes them up, and creates a “security” (think: a bond) that investors can buy.
This security represents the cash flows from all those loans. For example, mortgage-backed securities (MBS) bundle home loans into a single product, and investors get paid as homeowners make their mortgage payments.
It’s been a cornerstone of global finance for decades, with a market worth over $XX trillion Sounds great, right? Well, not so fast. Securitization has some quirks:
💎 It’s Complex: Bundling assets involves layers of intermediaries, banks, rating agencies, and lawyers. This makes it slow and expensive.
💎 It’s Opaque: Investors often don’t know exactly what’s in the “smoothie.” (Remember the 2008 financial crisis? Those murky mortgage-backed securities were a big culprit.)
💎 It’s Exclusive: Only big players like pension funds or hedge funds can afford to buy these securities, leaving smaller investors out.
💎 It’s Rigid: Once bundled, you can’t easily tweak or split the assets further. It’s a one-size-fits-all deal.
Securitization is like a walled garden, great for institutions, but not so friendly for the average person or small business looking to unlock value from their assets.
Enter Tokenization: The New Kid on the Block🙂
Now, let’s talk about tokenization, the tech-forward, blockchain-powered approach that’s turning heads.
Instead of blending assets into a smoothie, tokenization is like slicing a cake into precise, digital pieces. Each piece (a token) represents direct ownership in a specific asset, like a house, a painting, or even a rare vintage car.
These tokens live on a blockchain, a secure digital ledger that records who owns what, and they can be traded instantly, globally, and transparently.
Here’s why tokenization is a game-changer:
🩵 Fractional Ownership: You don’t need to buy the whole villa. You can buy a $XXXXX token representing a tiny piece of it. This opens up investments to everyday people.
🩵 Liquidity: Tokens can be traded 24/7 on digital exchanges, unlike traditional assets that might take months to sell.
🩵 Transparency: Blockchain records are public and unchangeable, so you know exactly what you’re buying and who owns it.
🩵 Programmability: Tokens can have smart contracts, think of them as tiny computer programs baked into the token.
They can automate things like paying dividends or enforcing legal rules. Tokenization doesn’t just bundle assets; it individualizes them, making them more accessible and flexible.
For example, @Novastro_xyz tokenized a commercial property, splitting it into thousands of tokens.
Small investors from around the world could buy in, and the property’s rental income was automatically distributed to token holders via smart contracts.
XX engagements
Related Topics home loans collateralized debt obligations