Proceedings of the 2023 5th International Conference on Economic Management and Cultural Industry (ICEMCI 2023)

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Tokenization of ABS Underlying Assets

Authors
Jie Cui1, *
1The University of Sydney, NSW, 2006, Sydney, Australia
*Corresponding author. Email: jcui6376@uni.sydney.edu.au
Corresponding Author
Jie Cui
Available Online 14 February 2024.
DOI
10.2991/978-94-6463-368-9_78How to use a DOI?
Keywords
ABS; tokenization; tokenomics; smart contracts; blockchain; cryptocurrency
Abstract

This study proposes a potential blockchain-based solution to address informational inefficiencies in traditional ABS (asset-backed securities) markets, including, lack of transparency, illiquidity and information asymmetry. By dividing ABS assets into small tradable units on a blockchain network, peer-to-peer trading via smart contracts is enabled, which lowers costs while improving liquidity, transparency, and security over conventional ABS issuance. Based on an analysis of the cryptocurrency issuance on the blockchain network, this paper explores technical principles and potential applications of smart contracts that are capable to ensure the security and efficiency of ABS primary-market issuance and subsequent secondary-market transactions. I also discuss the potential risks such as global regulatory uncertainties, restrictions, and potential technological concerns regarding asset tokenization and cross-border transactions. Overall, while ABS tokenization may address some persistent challenges in traditional ABS markets, expanded analysis and further study are warranted to assess the economic impacts and address regulatory challenges across borders to realize blockchain’s transformational promise in capital markets.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2023 5th International Conference on Economic Management and Cultural Industry (ICEMCI 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
14 February 2024
ISBN
10.2991/978-94-6463-368-9_78
ISSN
2352-5428
DOI
10.2991/978-94-6463-368-9_78How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jie Cui
PY  - 2024
DA  - 2024/02/14
TI  - Tokenization of ABS Underlying Assets
BT  - Proceedings of the 2023 5th International Conference on Economic Management and Cultural Industry (ICEMCI 2023)
PB  - Atlantis Press
SP  - 653
EP  - 664
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-368-9_78
DO  - 10.2991/978-94-6463-368-9_78
ID  - Cui2024
ER  -