Blockchain Securitisation: An Australian-Compliant Framework for On-Chain RMBS
This paper proposes a legally and operationally compliant framework for issuing Australian Residential Mortgage-Backed Securities (RMBS) on-chain. Unlike proposals focused purely on speed, this model prioritises compatibility with the Corporations Act, PPSA, and the Torrens Title system.
The Australian RMBS market is a cornerstone of the nation's financial architecture. However, the traditional process remains intermediary-heavy and document-intensive. This framework argues that blockchain technology can be applied in a "technology-neutral" manner to re-engineer the RMBS lifecycle.
1. The "Dual-Layer" Structure
A purely "code-is-law" approach does not work in Australia. Instead, we propose a dual-layer structure:
- On-Chain: Mortgage NFTs™ record beneficial interests and data.
- Off-Chain: Traditional deeds preserve legal enforceability and true-sale protections.
2. The Smart SPV
We introduce the concept of the "Smart SPV." Rather than a DAO, this is a traditional trust enhanced by smart contracts that automate the "waterfall" of payments. This ensures compliance with APRA's APS 120 standard regarding separation and control.
3. T+0 Settlement & Risk Reduction
Recent failures in US securitisation (e.g., First Brands Group in 2025) exposed weaknesses in collateral verification. This model uses automated T+0 On-Ramping™ to ensure immediate cash segregation, mitigating "sweeping risk" and providing a transparent audit trail.
4. Regulatory Compliance
The paper provides a detailed mapping of the framework against Prudential Standard APS 120 (2023), demonstrating that the "Smart SPV" can satisfy requirements for legal isolation, separation, and reporting.