Securitization

Securitization is the financial process of pooling various types of assets into a single interest-bearing security that can be sold to investors. In the crypto domain, this involves packaging revenue-generating digital assets, such as staking rewards or lending interest, into a tradable token.

This transforms illiquid assets into liquid, market-tradable instruments. The process relies on clear legal and technical structures, such as SPVs, to ensure that the underlying assets are secure and that the cash flows are properly distributed.

Securitization enables broader participation in digital asset markets and allows for the creation of sophisticated financial products tailored to different risk profiles. It is a key mechanism for deepening liquidity and expanding the utility of decentralized finance.