4. Business model and landscape
Tokenized CDO for bank-intermediated credit
As an issuer of tokenized CDOs, we may think of ChinaAI as a marketplace for bank credit risk - we make it easy for banks to sell a pool of credit risk, and for the public to control who gets access to the associated loans. Formally, credit is transferred through a super senior tranche that pools together various types of credit assets. Section 2.2 defines the scope of credit instruments that may be referenced by ChinaAI CDOs. These range from mortgage loans to trade finance. In order to assess the ChinaAI business model at launch, we restrict the scope of discussion to trade finance.
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