iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,453 Blog Posts

GET IN HERE AND CHECK OUT MY NEXT BLOCKCHAIN PLAY; IT’S RIDICULOUS

An article from several months ago…

You may have heard how the finance industry is looking to take advantage of blockchain technology beyond peer-to-peer money transfers. Today we have a story that fits into that narrative, with a group of banks led by Credit Suisse inching closer to launching a blockchain-based platform to offer loans.

Speaking to the finance magazine EuroMoney, Emmanuel Aidoo, Credit Suisse’s head of blockchain efforts, said that syndicated loan trial — which began last fall — is moving ahead.

“We are working to put a few dozen smaller loan transactions, where we or other participating banks are the agent, onto a distributed ledger platform using smart contracts in production next year,” he said.

The concept

The test envisions a syndicated loan market in which multiple lenders pool their capital for individual borrowers. The group hopes the blockchain technology can reduce barriers between counterparts, reducing both time and cost in making the necessary capital available.

Also, using smart contracts will reduce turnaround times to eventually increase the market’s appeal to both lenders and investors, according to Aidoo.

“Many investors, including mutual funds and institutional asset managers, might be attracted to loans that are senior to bonds in the capital structure, but they are put off by how long loan trades take to settle,” he added.

Second phase of testing has been completed

The second phase of testing has been completed in March. Among the banks that were included as participants, we find such giants as Barclays, BBVA, Danske Bank, LSTA, Royal Bank of Scotland, Scotiabank, Societe Generale, State Street Corporation, TenDelta LLC, U.S. Bank and Wells Fargo.

On the buy-side there were AllianceBernstein, Eaton Vance Management, KKR, and Oak Hill Advisors.

Distributed ledger startup R3’s research outfit managed the test, while the system was developed by Synaps, a joint venture backed by blockchain startup Symbiont and Ipreo — the latter of which is co-owned by Goldman Sachs and private equity giant Blackstone.

Did someone say Oak Hill Advisors?

Someone dropped the ticker in The Pelican Room at Exodus, so I went long.

Why the heck not?

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4 comments

  1. CoinSpeak

    But have you bought any actual crypto yet?

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  2. moosh

    It’s a delicate process.

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  3. active shooter

    Blockchain play?……..OHAI?……..are they not an Oil & Gas Royalty play anymore??

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  4. masteroneass

    Coins are tapped out. The more adopted the less they will rise. They arent going up 2000% in a year. Unload and the other will hold the bag. It is the company that actually adopts this tech which will reap the gains next. The underlying coins have no value its not like they generate income like microsoft or something. They are just mined solutions. Keep the blockchain stock tips coming fly
    evetually the obvious one will lets just say be obvious.

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