Skip to main content

​
Overview

The Securitization Workflow enables financial institutions to bundle loans and bonds into structured finance products, create CDM-compliant securitization pools, notarize transactions on the blockchain, and mint ERC-721 tranche tokens for investors. Code Reference: app/services/securitization_service.py, app/api/securitization_routes.py, client/src/apps/securitization/SecuritizationWorkflow.tsx

​
Key Features

​
Pool Creation

  • Asset Selection: Select loans and bonds from your portfolio
  • Pool Configuration: Define pool parameters and structure
  • CDM Compliance: All pools are CDM-compliant
  • Auto-Generation: Automatic pool structure generation
Code Reference: app/services/securitization_service.py (create_securitization_pool)

​
Blockchain Notarization

  • MetaMask Integration: Multi-party signing with MetaMask
  • Smart Contracts: SecuritizationNotarization contract on Base network
  • Immutable Records: Blockchain-based transaction records
  • CDM Events: Notarization events stored as CDM events
Code Reference: app/services/blockchain_service.py, app/services/notarization_service.py

​
Tranche Minting

  • ERC-721 Tokens: Mint non-fungible tranche tokens
  • Tranche Structure: Define seniority, interest rates, payment priority
  • Token Metadata: Rich metadata for each tranche
  • Investor Distribution: Distribute tokens to investors
Code Reference: contracts/SecuritizationToken.sol, app/services/securitization_service.py

​
Payment Distribution

  • Payment Waterfall: Automated payment distribution
  • Priority Rules: Senior tranches paid first
  • Smart Contract Routing: SecuritizationPaymentRouter contract
  • USDC Payments: Payments in USDC stablecoin on Base network
Code Reference: contracts/SecuritizationPaymentRouter.sol, app/services/securitization_service.py (distribute_payments)

​
Workflow

​
1. Create Securitization Pool

  1. Select Assets: Choose loans/bonds to include in pool
  2. Configure Pool: Set pool name, description, parameters
  3. Define Tranches: Create tranche structure (senior, mezzanine, equity)
  4. Review: Review pool configuration
  5. Create: Generate CDM-compliant securitization pool

​
2. Notarize Pool

  1. Connect Wallets: All parties connect MetaMask wallets
  2. Review Terms: Review securitization terms
  3. Sign: Each party signs the notarization
  4. Submit: Submit signatures to blockchain
  5. Confirm: Receive blockchain transaction hash

​
3. Mint Tranche Tokens

  1. Select Tranche: Choose tranche to mint
  2. Configure Token: Set token metadata and properties
  3. Mint: Deploy ERC-721 token contract
  4. Distribute: Assign tokens to investors
  5. Track: Monitor token ownership and transfers

​
4. Process Payments

  1. Receive Payments: Collect payments from underlying assets
  2. Calculate Distribution: Apply payment waterfall rules
  3. Route Payments: Use smart contract for distribution
  4. Update Records: Update payment history and CDM events

​
CDM Compliance

​
Securitization Models

All securitization data uses CDM models:
  • SecuritizationPool: Pool structure and metadata
  • UnderlyingAsset: Assets in the pool
  • Tranche: Tranche definitions
  • PaymentWaterfall: Payment distribution rules
Code Reference: app/models/cdm.py (SecuritizationPool, UnderlyingAsset, Tranche, PaymentWaterfall)

​
CDM Events

All securitization actions generate CDM events:
  • SecuritizationCreation: Pool creation event
  • SecuritizationNotarization: Blockchain notarization event
  • TrancheMinting: Token minting event
  • PaymentDistribution: Payment distribution event
Code Reference: app/models/cdm_events.py (generate_cdm_securitization_creation, generate_cdm_securitization_notarization)

​
Smart Contracts

​
SecuritizationNotarization

Location: contracts/SecuritizationNotarization.sol Notarizes securitization pools on the blockchain with multi-party signatures.

​
SecuritizationToken (ERC-721)

Location: contracts/SecuritizationToken.sol Mints non-fungible tranche tokens representing ownership in securitization pools.

​
SecuritizationPaymentRouter

Location: contracts/SecuritizationPaymentRouter.sol Routes payments according to waterfall rules defined in the securitization structure. Code Reference: contracts/ directory

​
API Endpoints

Create a new securitization pool. List all securitization pools. Get detailed pool information. Notarize a securitization pool on the blockchain. Mint ERC-721 tokens for a tranche. Distribute payments according to waterfall rules. Code Reference: app/api/securitization_routes.py

​
Configuration

​
Environment Variables

​
X402_NETWORK_RPC_URL
string
Base network RPC URL. Mainnet: https://mainnet.base.org, Sepolia: https://sepolia.base.org
​
SECURITIZATION_NOTARIZATION_CONTRACT
string
SecuritizationNotarization contract address (auto-deployed if empty)
​
SECURITIZATION_TOKEN_CONTRACT
string
SecuritizationToken contract address (auto-deployed if empty)
​
SECURITIZATION_PAYMENT_ROUTER_CONTRACT
string
SecuritizationPaymentRouter contract address (auto-deployed if empty)
​
USDC_TOKEN_ADDRESS
string
USDC token address on Base network. Mainnet: 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913
Setup Guide: See MetaMask Setup Guide

​
User Interface

​
Securitization Workflow

Location: client/src/apps/securitization/SecuritizationWorkflow.tsx Features:
  • Asset Selection Table: Select loans/bonds for pool
  • Pool Configuration Panel: Configure pool parameters
  • Tranche Structure Editor: Define tranche structure
  • Notarization Interface: Multi-party signing interface
  • Token Minting Interface: Mint and distribute tokens
  • Payment Dashboard: Monitor payment distributions
Access: Navigate to “Securitization” in the sidebar

​
Best Practices

  1. Asset Selection: Choose assets with similar risk profiles
  2. Tranche Structure: Design clear seniority and payment priority
  3. Documentation: Maintain complete CDM event trail
  4. Compliance: Ensure regulatory filing requirements are met
  5. Testing: Test on Base Sepolia testnet (or a local Hardhat node: npm run node and npm run deploy:localhost in contracts/) before mainnet deployment

​
Additional Resources

Last Updated: 2026-01-14
Code Reference: app/services/securitization_service.py, app/api/securitization_routes.py, client/src/apps/securitization/SecuritizationWorkflow.tsx