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Tokenized mortgages can prevent another housing bubble crisis, says Casper exec

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The 2008 financial crisis was a devastating time for many, as the collapse of the United States real estate market caused ripple effects impacting the employment and livelihoods of millions of people.According to TheStreet, one of the chief causes of the crisis was the opaqueness of the mortgage industry.

Mortgages were bundled into packages called “mortgage-backed securities (MBS)” that could be bought and sold by banks and other investors who relied on rating agencies to determine how risky the securities were.

The banks sometimes “packaged AAA-rated securities with lower-quality ones, and these bundles were passed off as top-rated securities when they were sold to investors.” These investors didn’t necessarily understand that they were buying low-quality securities, which were likely to be defaulted on, leading to massive losses once the crisis revealed the truth.According to Ralf Kubli, a board member of the Casper Association, this fundamental problem that sparked the crisis still exists, but it can be fixed through blockchain technology.Kubli hails from both the traditional finance sector and the crypto industry.

He has previously worked in various mergers and acquisitions, sales and executive management positions at Sika, Starmind International, BCM Europe, and other companies.

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