The financial world is at a pivotal point, with blockchain technology and digital assets introducing unprecedented efficiencies and new possibilities for capital markets. Tokenization, the process of converting real-world assets like loans and real estate into digital tokens on a blockchain, is at the forefront of this revolution. By digitizing and fractionalizing traditional securities, tokenized securitization dramatically lowers transaction costs, increases liquidity, and expands the investor base for a wide range of assets. This innovative approach promises to democratize finance and create more transparent, efficient, and accessible capital markets globally.

This intensive 10-day training course provides a comprehensive exploration of the intersection of blockchain, digital finance, and securitization. Participants will gain a deep understanding of the core concepts, from smart contracts and distributed ledger technology to structuring, executing, and managing a tokenized securitization deal. Through practical case studies and hands-on exercises, you will learn how to leverage these powerful tools to create new funding opportunities and shape the future of finance.

Duration

10 days

Target Audience

• Investment banking and structured finance professionals
• Blockchain and FinTech developers
• Digital asset and crypto investors
• Legal and regulatory compliance officers
• Securitization analysts and credit rating professionals
• Executives of financial institutions and asset managers
• Risk management professionals

Objectives

• Understand the foundational principles of blockchain technology and smart contracts.
• Master the concept of asset tokenization and its application in securitization.
• Analyze the key benefits of tokenized securitization over traditional methods.
• Develop a systematic approach to structuring and executing a tokenized deal.
• Navigate the unique legal, regulatory, and technical challenges.
• Evaluate the role of decentralized finance (DeFi) in the securitization process.
• Explore the key participants and platforms in the digital asset ecosystem.
• Learn to manage the post-issuance lifecycle of a tokenized security.
• Identify and mitigate the risks associated with digital assets.

Course Modules

Module 1: Foundations of Blockchain and DLT

• An overview of blockchain technology and distributed ledger systems.
• The role of decentralization, immutability, and transparency.
• Understanding public vs. private blockchains.
• The mechanics of smart contracts and their functions.
• The different consensus mechanisms (e.g., Proof of Work, Proof of Stake).

Module 2: Introduction to Asset Tokenization

• Defining asset tokenization and its core principles.
• The benefits of tokenizing illiquid assets.
• Different types of tokens (e.g., security tokens, utility tokens).
• The process of converting physical assets to digital tokens.
• The role of on-chain and off-chain data and governance.

Module 3: The Case for Tokenized Securitization

• How tokenization enhances the traditional securitization model.
• The benefits for originators, investors, and other parties.
• Lowering transaction costs and increasing market efficiency.
• Fractional ownership and expanded investor access.
• The potential for real-time reporting and transparency.

Module 4: Structuring a Tokenized Securitization

• Designing the legal and technical structure of a tokenized deal.
• The role of the Special Purpose Vehicle (SPV) in a tokenized world.
• The use of smart contracts to automate the waterfall mechanism.
• Creating different tranches as digital tokens.
• The importance of the legal framework and true sale opinions.

Module 5: Legal and Regulatory Framework

• The evolving regulatory landscape for digital assets.
• Compliance with securities laws and financial regulations.
• The role of legal counsel in a tokenized transaction.
• Navigating different jurisdictions and their approaches to crypto.
• Understanding data privacy and security regulations.

Module 6: Smart Contracts and Automation

• A deep dive into the code behind a tokenized security.
• Automating cash flow distribution with smart contracts.
• Implementing governance and voting rights on-chain.
• The risks of smart contract vulnerabilities and bugs.
• Auditing and testing smart contract code.

Module 7: The Role of Digital Platforms

• An overview of various tokenization platforms and service providers.
• The role of issuance platforms and custody providers.
• Understanding decentralized exchanges and liquidity pools.
• The importance of platform security and reliability.
• How to evaluate a technology partner for a tokenized deal.

Module 8: Credit Risk Analysis in a Digital World

• The unique credit risks of a digital asset portfolio.
• The use of on-chain data for credit analysis.
• Analyzing the performance of the underlying assets.
• The impact of market volatility on token prices.
• The importance of robust data analytics and modeling.

Module 9: Credit Enhancement and Deal Rating

• How traditional credit enhancement techniques apply to tokenized deals.
• The role of overcollateralization and subordination.
• The considerations of credit rating agencies for digital assets.
• The importance of transparency and real-time data for ratings.
• The impact of a rating on investor demand and pricing.

Module 10: Investor Perspectives and Marketing

• Understanding the investor base for tokenized securities.
• The role of investor due diligence in a digital asset deal.
• Crafting the digital offering memorandum and marketing materials.
• The role of digital roadshows and investor outreach.
• Addressing investor concerns regarding security and regulation.

Module 11: Deal Execution and Closing

• The steps involved in the digital deal closing process.
• The roles of investment bankers, lawyers, and technology partners.
• The importance of a well-organized data room and disclosure.
• Finalizing the legal and smart contract documentation.
• The post-closing transition and ongoing management.

Module 12: Post-Issuance Management and DeFi

• The lifecycle of a tokenized security on the blockchain.
• Managing reporting to investors and rating agencies.
• The potential of integrating with decentralized finance (DeFi) protocols.
• The use of smart contracts for servicing and workout strategies.
• The importance of on-chain transparency and governance.

Module 13: Emerging Trends and Innovations

• The rise of NFTs and their potential for securitization.
• The future of decentralized autonomous organizations (DAOs) in finance.
• The use of zero-knowledge proofs for privacy and compliance.
• The integration of digital identity and verifiable credentials.
• New funding models and structural innovations.

Module 14: Case Studies and Best Practices

• A detailed analysis of successful tokenized securitization deals.
• Learning from market trends and evolving best practices.
• Examining transactions from different asset classes (e.g., real estate, music royalties).
• A discussion on the long-term impact on the market.
• A deep dive into the challenges and opportunities of real-world use cases.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.