Major Banks, Startups Advance Blockchain Syndicated Loan Pilot

A group of banks and finance firms led by Credit Suisse have completed the next phase of a blockchain proof-of-concept focused on syndicated loans.

AccessTimeIconMar 30, 2017 at 8:15 p.m. UTC
Updated Dec 10, 2022 at 9:26 p.m. UTC

A group of banks and financial firms led by Credit Suisse recently completed the second phase of a blockchain proof-of-concept focused on syndicated loans.

The system was developed Synaps, a joint venture backed by blockchain startup Symbiont and Ipreo, a fintech firm co-owned by Goldman Sachs and private equity giant Blackstone.

The demonstration drew a variety of finance firm as participants, including Barclays, BBVA, Danske Bank, LSTA, Royal Bank of Scotland, Scotiabank, Societe Generale, State Street Corporation, TenDelta LLC, U.S. Bank and Wells Fargo. Buy-side companies AllianceBernstein, Eaton Vance Management, KKR, and Oak Hill Advisors took part in the trial as well. Distributed ledger startup R3's research outfit managed the test.

The effort, first announced in September, will continue with further refinement of the tech developed by Ipreo. Emmanuel Aidoo, who leads Credit Suisse's blockchain efforts, said that the bank intends to keep working closely on the initiative.

He said in a statement:

"Over the coming months we will work with Symbiont and Ipreo to implement the remaining functions to allow for distributed ledger technology to support a syndicated loan facility from origination to payoff, and work toward market adoption. The technical and market expertise that the project participants brought to the table means this solution will be tailor-made for use in live transactions."

Work on applying blockchain to the syndicated loan market – in which multiple lenders pool capital for single borrowers – has been pursued by other financial institutions as well. Last year, Japan-based Mizuho and Microsoft began work on a syndicated loan project.

Image via Shutterstockhttps://www.shutterstock.com/image-photo/miniature-businessman-team-training-gold-coins-350598629?src=acNpNgYS59yRxfAFj-oihg-1-3

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.