Global Debt Registry (GDR) has announced the launch of its loan registry.
The loan is designed to verify and provide transparency on loan data on the cloud-based IBM (international business machines) blockchain platform.
All loan level collateral positions and verification activity will now be immutably recorded on the decentralised registry with highly secure permissioning and access controls.
This will provide new levels of efficiency to the $400 billion asset backed securities (ABS) market.
Currently, the ABS market is dependent on a large ecosystem of service providers across an extensive supply chain starting at loan origination.
Several investment banks are using the cloud-based IBM blockchain platform to manage collateral positions more effectively across many originators including premier online leader, Avant.
Kevin Friedrich, vice president of finance and treasury from Avant, said: “Avant is committed to serving its capital partners with innovative technical solutions to maximise transparency and ease of collateral management, as further demonstrated through our use of GDR’s blockchain based registry.”
Marie Wieck, general manager, IBM Blockchain, commented: “One of the strongest use cases of blockchain that IBM has seen in working with hundreds of clients is its ability to trace the origin of a variety of financial assets.”
Wieck continued: “GDR is a pioneer in the space of loan provenance and is using blockchain to reinvent the entire business model by providing all relevant parties a shared view of loan data.”
“Ultimately, this will allow the market to preserve the integrity of these assets, proving the value of blockchain in streamlining manual, repetitive processes in these complex supply chains.”
Charlie Moore, president of GDR, added: “We selected the IBM Blockchain Platform due to IBM’s profound understanding of enterprise needs within the financial services industry and the ability to test our solution in a simulated environment.”
“The tokenization of loans and supporting loan data represents a huge opportunity to bring efficiency and speed to the structured credit industry”, Moore explained.
“Blockchain based loan records will not only enhance asset integrity, but enable cost savings, automation through smart contracts, faster deal execution and new structured credit products.”
