BlockInvest Tokenizes Impaired Credits with Blockchain

A new era for NPL management: digitisation in action

Italian fintech startup BlockInvest has taken a decisive step towards changing the traditional approach to managing impaired loans.

The company has unveiled an innovative project to convert so-called NPLs (Non-Performing Loans) into digital tokens. This approach paves the way for greater transparency, efficiency and liquidity in a traditionally static debt market.

The project has already been realised in collaboration with entities such as Banca Valsabbina, Italian digital infrastructure provider CSD BNP Paribas and law firm Lexia Avvocati. The first launch of tokenized NPLs on the Ethereum blockchain has been a success and is already considered a turning point for the entire European financial system.

Why is the Tokenization of NPLs important?

Impaired loans are one of the main problems in the banking sector, especially in southern European countries. They burden banks' balance sheets, reduce lending capacity and entail high administrative costs. BlockInvest proposes a solution: transfer the rights to these debts to a blockchain format, which allows their movement to be tracked, simplifies the buying and selling processes and attracts more investors to the market.

This approach significantly reduces barriers in the secondary debt market. Investors gain access to digital assets that comply with legal requirements, including the European Commission's standards regulating tokenized securities.

How it works in practice

Thanks to the BlockInvest platform, assets linked to impaired debt are converted into tokens, digital representations of debt law. These tokens can be transferred between participants via the blockchain, ensuring the security and immutability of the records. All debt information, owners, terms and maturities are recorded in smart contracts and only accessible to authorised parties.

The process is fully compliant with legal regulations, including the MiCA and eIDAS directives, thanks to integration with KYC and AML verification services. This makes the system not only technologically innovative, but also fully compliant with European law.

A new vision of debt management

The NPL market in Europe is worth hundreds of billions of euro and its tokenisation opens up new opportunities for both banks and investors. The digital format speeds up procedures, reduces costs and increases liquidity. Moreover, thanks to blockchain, all processes become more transparent and information more accessible.

BlockInvest aims not only to implement the technology, but to radically change the approach to debt-related financial instruments. This is not only a more efficient way to manage NPLs, but also a potential model that can be applied to other types of assets, such as real estate, bonds and private investments.

Outlook and impact on the market

BlockInvest's initiative could represent a turning point in the history of the European financial sector. If the tokenization model proves to be successful, it will be adopted in other countries and the digital asset market itself will receive a new growth impetus. The emergence of such solutions also demonstrates that Europe is ready to integrate blockchain technologies into traditional financial mechanisms.

The platform has already announced expansion plans, including the addition of new asset types and the strengthening of collaboration with banks and investment funds.

BlockInvest thus demonstrates how technology start-ups can not only transform specific processes, but also redefine fundamental approaches to asset management.