Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

05 October 2017

City A. M.: HSBC, ING, BNY Mellon and other banks are working together to create a platform for syndicated loans using blockchain technology


BNP Paribas and State Street are also among the financial institutions who have been named as involved in the project. Well-known blockchain consortium R3 and Finastra - the UK financial software company formerly known as Misys combined with Canada's DH Corp - will provide the technology side of things.

The online marketplace called Fusion LenderComm will use blockchain's distributed ledger technology (DLT) to increase transparency and efficiency for the loans which involve multiple lenders, while also reducing costs. Currently such work in the area is done manually

“The community of banks already on board covers approximately 10 per cent of the global syndicated lending market and demonstrates the appetite to make this market utility a success," said Finastra deputy chief executive Simon Paris. "As more participants join, we will quickly gain the critical mass to develop this into the leading marketplace for syndicated lending and loan trading.”

State Street's global lead for syndicated loan products Robert Waddell said: "Fusion LenderComm has the potential to solve a problem whose solution has eluded the loan market since inception: distribution of loan information in a structured, timely, transparent manner that comes directly from the content creators – the agent banks."

Full article



© City A.M.


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment