MBSToken Targets Mortgage-Backed Securities

Asset Token Ventures, a company merging real-world assets with blockchain, has launched MBSToken, a solution targeting the $11 trillion mortgage-backed securities market. Designed for institutional accredited investors and qualified purchasers, MBSToken offers on-chain exposure to mortgage-backed securities, which have been traditionally restricted to major financial institutions.

At the core of this initiative are two parallel funds: MBSToken I (for non-U.S. investors) and MBSToken II (for U.S. investors).

“The fixed-income market, particularly mortgage-backed securities, is ripe for innovation,” said David Robnett, co-founder and managing director of Asset Token Ventures. “We are bringing institutional-grade mortgage-backed securities investments on-chain, unlocking liquidity, improving transparency, and offering investors a seamless way to gain exposure to one of the most important financial markets.”

MBSToken is designed to deliver key advantages that address long-standing inefficiencies in the mortgage-backed securities market. It is collateralized by pools of mortgage-backed securities, many of which are guaranteed by U.S. government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae.

Asset Token Ventures said its USVI-based funds qualify for a 90% income tax exemption that provides a higher overall yield and may allow investors to defer taxable appreciation until token redemption. Transactions are recorded on an immutable ledger, providing real-time insight into asset performance and portfolio composition.

Mortgage-backed securities holdings are structured into bankruptcy remote, stand-alone funds, providing an added layer of investor protection. MBSToken allows institutional accredited investors and qualified purchasers worldwide to participate in the U.S. mortgage-backed securities market.

“Fixed-income markets are undergoing a digital transformation,” said John Matheson, co-founder and managing director of Asset Token Ventures. “By leveraging blockchain technology, we are making MBS investments more accessible, more efficient, and ultimately more valuable for global investors.”

The $11 trillion U.S. mortgage-backed securities market plays a critical role in global finance, but historically, its complexity and inaccessibility have limited participation. Asset Token Ventures said MBSToken marks a significant step toward digitizing fixed-income markets, offering a bridge between traditional financial structures and the efficiencies of blockchain technology.

The firm said the launch of MBSToken aligns with a broader industry trend as major financial institutions increasingly explore tokenization as a means to unlock liquidity, reduce costs, and improve market efficiency.

Paul Talbert, co-founder and managing director of ATV, said, “We believe tokenization will redefine how capital is deployed in traditional markets. MBSToken is the first step toward a more inclusive and efficient financial ecosystem, one that integrates the best of institutional finance with blockchain’s transformative potential.”