Application of Blockchain in Asset-Backed Securitization

Abstract

one of the most important emerging technologies in the recent years, blockchain has been well developed and widely used in many domains, including financial business systems. One of such financial business systems, traditionally called AssetBacked securitization (ABS), suffers from several shortcomings such as information asymmetry, credit rating inaccuracy and poor product liquidity. In this paper, we propose to use the blockchain technology to improve ABS financial business system. First, we analyze the current situation and existing issues of ABS business in China to summarize the problems to be solved. Then, we propose our designs of an ABS business system based on the blockchain technology.