A group of banks led by Credit Suisse is eyeing the launch of a commercial platform for blockchain-based syndicated loans, according to reports.
Aidoo told the publication:
The group involved finished the second phase of their testing in March. Conceptually, the test envisions a syndicated loan market – in which multiple lenders pool their capital for individual borrowers – built on blockchain. The group hopes the technology can reduce barriers between counterparts, reducing both time and cost in making the necessary capital available.
"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 said.
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