This report analyzes how rising nonperforming loans (NPL) pose a risk to banking sector stability in some Asia and Pacific economies and shows how electronic trading platforms can strengthen NPL markets, bolster cross-border transactions, and enhance transparency. Drawing on insights from economies such as the Republic of Korea and Viet Nam, it outlines a blueprint for addressing the legal, regulatory, and technical challenges of NPL trading platforms. It proposes 10 steps economies can follow to establish online platforms which can help attract foreign investment, improve pricing, and foster financial resilience across the region.