- This article explains how different types of assets can be converted into bankable assets through securitization using exchange-listed products (ETPs), along with the key trends shaping these instruments.
- It is particularly relevant for advisors and portfolio managers who want to structure and distribute their investment strategies more efficiently and access international capital markets.
- Thanks to FlexFunds solutions, asset managers can efficiently and cost-effectively transform any type of asset into a bankable asset. Discover more of FlexFunds’ products and find the solution that best suits your needs. Feel free to contact our team of specialists.
Distribution of bankable assets via private banking platforms
Private banking platforms continue to play a key role in how bankable assets, especially those created through securitization and structured products, are distributed globally.
As wealth becomes more concentrated and much more cross-border, these platforms are a necessity for connecting asset managers with high-net-worth and institutional investors.
According to the McKinsey Global Institute, global wealth is now estimated at around $600 trillion, highlighting the sheer volume of capital looking for efficient and scalable investment opportunities.
This helps explain why private banking platforms are becoming even more important. They act as a connection between complex investment structures and global investors who need solutions that are clear, compliant, and easy to access across different jurisdictions.
Bankable assets securitized with ETP (exchange-traded product) structures can be marketed to private banks globally because they align with the risk, compliance, and liquidity requirements.
As a result, private banks view ETP-based bankable assets as attractive because they offer structured credit or alternative revenue streams, as provided by FlexFunds.
FlexFunds’ securitization program facilitates access to multiple private banking platforms.
Which Assets Can Be Converted into Bankable Assets?
Almost any cash-flow generating asset can be transformed into a bankable instrument through securitization, given that it produces measurable, predictable revenues and can be structured to meet regulatory and investor standards.
According to structured finance frameworks, eligible securitizable assets include:
- Loan portfolios (auto loans, mortgages, credit card receivables) with steady payment streams.
- Corporate and consumer credit exposures, including receivables and trade finance pools.
- Alternative assets such as private credit, infrastructure revenue streams, royalties, and leveraged leases.
- Newer asset classes, including tokenized real-world assets (RWAs) and revenue rights, where digital ledger technologies enable fractional ownership and enhanced liquidity.
- Listed REITs qualify as bankable assets due to their regulated structure, daily liquidity, and predictable income distributions, making them suitable for private banking portfolios, ETPs, and structured products.
While regulatory frameworks vary by jurisdiction, the general rule of thumb in securitization markets is that the more diversified and stable the cash flow, and the lower the legal and licensing restrictions, the easier the asset class can be structured into a bankable security.
Most asset classes can be securitized, provided they meet key legal, regulatory, and structural requirements. However, certain esoteric assets—such as spectrum rights or specific intellectual property—may pose practical limitations.
The Process of Converting Assets into Bankable Instruments
The process of converting assets into bankable assets through ETPs is straightforward for FlexFunds clients.
Clients begin by identifying the assets to be securitized. Subsequently, FlexFunds handles the ETP issuance process, corporate administration services, and fund accounting.
After completing the procedure, the portfolio manager may proceed with the institutional distribution of the ETP, consolidating various assets into a single investment vehicle.
Through a defined five-step process, asset managers can launch ETPs into global capital markets:
- Design of the ETP investment strategy
- Signing of the Engagement Letter
- Due Diligence Process
- Creation of the ETP
- Issuance of the ETP
About ETPs and Their Future
ETPs are listed on stock exchanges, similar to equities, which means their prices can fluctuate throughout the trading day.
However, their value is determined by the performance of the assets they track.
Since the launch of the first ETF in 1993, the market has grown rapidly. In fact, global ETF and ETP assets reached a record high YTD net inflows of $2.37 trillion as of early 2026.
Key Trends in Asset Securitization for 2026
According to the Third Annual Report on the Asset Securitization Sector, the industry is becoming more dynamic and complex, with asset managers adjusting to changing market conditions, new regulations, and ongoing technological advances.
Here are the main trends shaping the sector in 2026:
- More complex market conditions: Inflation, interest rates, and geopolitical uncertainty are playing a bigger role in how portfolios are built and managed.
- A mix of investment structures: Managers are combining tailored solutions like SMAs with scalable options such as funds and ETFs to meet different client needs.
- Technology taking center stage: Automation and digital tools are now essential for managing portfolios, improving efficiency, and staying competitive.
- More streamlined operations: Key processes, like reporting, NAV calculations, and rebalancing, are increasingly automated to save time and reduce costs.
- Stronger regulatory focus: Firms are under pressure to improve transparency, governance, and compliance as regulations continue to evolve.
- ETFs and ETPs are growing: These vehicles continue to grow, offering more flexibility, liquidity, and access to specialized strategies.
Overall, securitization in 2026 is becoming more flexible, tech-driven, and focused on adapting quickly to market changes.
The FlexFunds IRISK Index is a tool introduced to show how well asset managers are adapting to today’s financial environment. With a score of 65 out of 100, it suggests the industry is at a moderately advanced stage while managing challenges like economic uncertainty, new regulations, and digital changes, and still working to improve efficiency and overall strategy.
To learn more about exchange-listed products and how you can benefit from them, contact our specialists.
Sources:
- https://www.mckinsey.com/mgi/our-research/out-of-balance-whats-next-for-growth-wealth-and-debt
- https://etfgi.com/news/press-releases/2026/01/etfgi-reports-assets-global-etf-industry-hit-record-us1985-trillion
- https://www.mondaq.com/unitedstates/securitization-structured-finance/1613600/country-comparative-guides-2025-united-states-securitisation
- https://flexfunds.com/annual-report-2025/
- https://www.fidelity.com/learning-center/smart-money/what-is-nav
