R3 Banks, Startups Test Blockchain System for Syndicated Loans
A syndicated loan exchange trial utilizing blockchain technology being undertaken by a group of banks alongside startups R3 and Symbiont is moving ahead. Announced during this week’s Sibos finance and technology conference in Geneva, Switzerland, the news sees the two startups, financial data provider Ipreo and Swiss financial services firm Credit Suisse (which organized the trial) completing the syndicated loan project's first phase. The test wasn’t limited to just those companies, however. R3 members BBVA, Danske Bank, Royal Bank of Scotland, Scotiabank, Société Générale, State Street,....
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A group of banks, the R3 blockchain consortium and Fintech startup Symbiont have created completed the trail of a proof of concept blockchain simulating an exchange of syndicated loans. An increasing number of financial instruments are being tested, successfully, for transfers and exchange on a blockchain platform and the latest industry endeavor puts the scanner on syndicated loans, an loan offering which sees a group of lenders – a syndicate – collectively lend to a single borrower. In an announcement today communicated to CCN, European bank Credit Suisse, a number of banks forming the....
A group of South African banks have pushed ahead with plans to test blockchain applications in a partnership that has drawn support from key regulators in the country. As reported by local outlets IT Web and MoneyWeb, the project included teams from Standard Chartered, Absa, Rand Merchant Bank, Investec and Nedbank. Supporters of the initiative included the Financial Services Board, a major finance regulator; Strate, the country’s central securities depository; and the South African Reserve Bank. The institutions involved developed and tested a system for issuing syndicated loans via....
Financial services giant Mizuho has announced a second blockchain technology trial to be focused on syndicated loans. Announced on 16th February, the project finds Mizuho uniting with other Japan-based companies, including Information Services International-Dentsu (ISID), blockchain startup Currency Port and Microsoft Japan Co, the local subsidiary of the US tech giant. ISID corporate communications officer Kayoko Lee said that the trial is still in early stages, as the partners seek first to "verify the applicability" of the technology to the post-trade process using Microsoft’s....
Bitcoin Startups are getting into every sector of the financial industry, and the banks know it. Online businesses have been threatening the banks, and now a massive wave of Bitcoin startups are innovating the financial sector up to the point that banks needed to act. Personal-finance startups are helping consumers balance their checkbooks online. Refinancing startups are taking advantage of cheap debt to offer students better rates on loans; on the other hand, all these new startups are introducing an innovative and more simplistic approach for the financial business industry. All of it....
Most people in the Bitcoin community agree that the digital currency has the ability to render fractional reserve banking impossible, but not everyone agrees on whether or not this development would be a good thing. The skeptics worry that without fractional reserve banking, it will somehow be impossible for banks to make loans. Taking this ability from....