Allonge tokenizes institutional‑grade mortgage loans into SEC‑registered security tokens, enabling accredited investors to purchase fractional shares with a $5,000 minimum. The platform applies Wall Street underwriting standards and an automated cash‑flow waterfall to deliver 6‑8% annual yields while providing real‑time performance dashboards. Immutable ownership records and built‑in KYC/AML compliance ensure regulatory protection and liquidity for token holders.
Funding
Funding not disclosed
Founders
Product
Problem
Accredited retail investors lack direct access to institutional-quality mortgage assets because traditional deals require large capital commitments and are opaque, leaving a sizable yield gap. Simultaneously, “scratch‑and‑dent” mortgages—loans with minor documentation issues but solid payment histories—remain unsold, creating market inefficiencies and missed income opportunities.
Solution
Allonge tokenizes these high‑yield mortgages into SEC‑registered security tokens, enabling fractional ownership starting at $5,000. The platform applies the same underwriting criteria used by Wall Street funds to vet each loan, ensuring that only low‑risk, cash‑flow‑positive assets are offered. Investors purchase tokenized shares through a KYC‑verified portal, receive monthly interest and principal distributions, and can monitor performance via a real‑time web and mobile dashboard. By aggregating a diversified pool of vetted scratch‑and‑dent mortgages, Allonge delivers 6‑8% annual yields while preserving liquidity and regulatory compliance. The tokenized structure also provides transparent audit trails and immutable ownership records, reducing operational friction for both issuers and investors.
Target Audience
The primary customers are accredited individual investors and wealth‑management firms seeking predictable, income‑producing real‑estate exposure without the high capital thresholds of traditional mortgage‑backed securities.
Features
- SEC‑regulated security token issuance that guarantees compliance, investor protection, and immutable ownership records on a permissioned ledger.
- Fractionalization engine that slices each mortgage into $5,000 minimum shares, allowing portfolio diversification with modest capital.
- Institutional‑grade underwriting workflow leveraging proprietary risk models, automated document validation, and real‑time loan performance analytics.
- Automated cash‑flow waterfall that allocates monthly interest and principal payments directly to token holders’ accounts.
- Web and native mobile application with live portfolio metrics, performance dashboards, and secure document repositories.
- Integrated KYC/AML verification pipeline to certify accredited investor status before any transaction.
- API endpoints for third‑party custodians and wealth‑management platforms to ingest token data and reconcile distributions.