A group of banks led by Credit Suisse is working on the launch of a commercial platform for blockchain-based syndicated loans.
Speaking with the financial magazine EuroMoney, Emmanuel Aidoo, head of the Credit Suisse Blockchain Group, said the negotiations on syndicated loans (jointly contracted loans) are progressing well. Work on the project has been going on since last fall.
The idea of Credit Suisse
Aidoo says in a statement:
“We’re working to do a few dozen smaller loan transactions where we or another participating bank is the agent. The whole thing should work through a Distributed Ledger platform on the basis of Smartcontracts. A working version is planned for next year. “
The group involved completed the second test phase in March. Conceptually, the test provides for the creation of a syndicated credit market based on the blockchain, in which several lenders pool their capital for individual borrowers. The group hopes that the technology can reduce the barriers between the parties and reduce time and costs in this way. Through the savings the necessary capital can be made available.
The use of Smart Contracts is intended to reduce turnaround times and increase the attractiveness of the market for potential lenders and investors.
“Many investors, including investment funds and institutional asset managers, may be interested in the loans classified as ‘senior’ in their capital structure. So far, many of these investors are deterred by the length of time that such loan transactions take place, “said Aidoo.
The Bitcoin News
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise