Optimal Portfolio Sold-Out via Blockchain Tokenization

Abstract

Financial institutions own balanced portfolios with many assets and hence a small risk. But they are not able to split them into smaller parts with comparable risk for resale due to regulators' restrictions caused by a lack of auditability. Blockchain and smart contracts allow overcoming this problem via tokenizing assets into a commodity. The paper seeks to answer the question: how to assemble as many as possible standardized packages from a given portfolio. The optimal algorithms for two special cases-discrete and continuous homogeneous-are provided.