Credit Suisse, Ipreo, Symbiont, R3 Convene Proof of Concept for Syndicated Loan Efficiencies
Credit Suisse, Ipreo, Symbiont and R3 announced the successful initial stage completion of a project to demonstrate how blockchain technology can be used to improve the syndicated loan market. The proof of concept will continue through the end of the year and includes participation from a number of agent banks, service providers and fund managers.
The project was arranged by Credit Suisse, is being managed by R3 in its Lab and Research Center, and utilizes technology solutions from Synaps Loans LLC, a recently formed partnership combining Symbiont’s leading smart contract technology with Ipreo’s new business process solution to speed loan trade settlement. Participants who collaborated and brought important market knowledge, process experience and testing resources to the project include R3 consortium members BBVA, Danske Bank, Royal Bank of Scotland, Scotiabank, Société Générale, State Street, U.S. Bank and Wells Fargo. Influential buy-side firms AllianceBernstein (AB), Eaton Vance Management, KKR and Oak Hill Advisors are also involved in the initiative.
“This project demonstrates the potential for blockchain technology to fundamentally reshape the syndicated loan market and the capital markets more broadly,” said Emmanuel Aidoo, head of the distributed ledger and blockchain effort at Credit Suisse. “This demonstration sets us on a path to increase efficiency and reduce costs, which will benefit banks and clients alike. By connecting a network of agent banks through blockchain, we can achieve faster and more certain settlements in the loan market.”
“We are demonstrating that distributed ledger technology can be put to work now,” said Joseph Salerno, a Managing Director at Ipreo and CEO of Synaps Loans LLC. “Our solution addresses actual use cases and meets production standards for maintainability, security, privacy and throughput.”
“Smart contracts can revolutionize the entire lifecycle of a loan, from creation to settlement in secondary market trading, ” said Mark Smith, CEO and Co-founder of Symbiont. “The payoff isn’t just cost savings, but the potential to create entirely new business opportunities for financial institutions.”
“Blockchain has the potential to change the loan issuance and servicing lifecycle,” said Antoine Shagoury, Executive Vice President and Global Chief Information Officer, State Street. “Pursuing new opportunities through testing and development is an important aspect of our digital strategy. We know, however, that many of the true desired benefits of Blockchain, for this application and others which require network participation, can only be achieved through industry collaboration and so we are thrilled by the prospect of playing a role in taking this proof of concept into the pilot phase with our industry peers.”
“There’s been a lot of hype around how distributed ledgers will drive efficiencies in the syndicated loan space,” said Robert Berk, Senior Vice President and Chief Operating Officer, U.S. Bank Capital Markets. “We’re excited to prove the technology works with players throughout the loan ecosystem to truly understand its value.”
Through Synaps, loan investors have direct access to an authoritative system of record for syndicated loan data. This yields immediate savings by reducing manual reviews, data re-entry and systems reconciliation. In the future, loan data processing can be done exclusively on the distributed ledger, eliminating the cost for each market participant to maintain its own separate lending system.
Credit Suisse AG
Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 47,180 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Copyright © 2016, CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.
R3 is leading a consortium with over 60 of the world’s largest financial institutions to develop ground-breaking commercial applications for the financial services industry that leverage the appropriate elements of distributed and shared ledger technology. Operating in New York, London and San Francisco, the R3 team is made up of financial industry veterans, technologists, and new tech entrepreneurs, bringing together expertise from electronic financial markets, cryptography and digital currencies. The R3 Lab and Research Centre has quickly become a centre of gravity for collaborative research and testing of distributed and shared-ledger inspired technologies, and is where R3 works with its partners to define, design and deliver the next generation of financial infrastructure.
About Synaps Loans LLC
Synaps Loans LLC (www.synapsloans.io) is using distributed ledger and smart contract technology to transform data management and trade settlement in the syndicated-loan market. Synaps is a joint venture of Ipreo (www.ipreo.com), a leading global provider of financial services technology, data and analytics, and Symbiont (www.symbiont.io), which is bridging the gap between the emerging blockchain ecosystem and Wall Street.
Symbiont is bridging the gap between the blockchain ecosystem and Wall Street. It has developed a platform that allows financial market participants to create programmable versions of traditional securities that take the form of Smart Securities™: self-executing digital contracts that are stored in a distributed ledger called a “blockchain.” The platform allows users to issue, manage, locate, and trade Smart Securities™ efficiently in a single, global, peer-to-peer financial network. www.symbiont.io
Ipreo is a leading global provider of financial services technology, data and analytics. We support all participants in the capital-raising process including banks, public and private companies, institutional and individual investors, as well as research, asset management and wealth management firms. Our unique, cross-asset class solutions equip our clients with the information and tools they need for more effective decision-making and a more efficient workflow. Ipreo is private-equity held by Blackstone and Goldman Sachs Merchant Banking Division, and has more than 1000 employees serving clients in every major financial hub around the world. Visit www.ipreo.com for more info.
Nicole Sharp, Credit Suisse AG, telephone +1 212 325 5200
Patrick Sutton, for Symbiont, +1 646 558 6277
Nick Warren/Ellie McFatridge, for R3, +44 (0)207 440 9780
Grace Keith, for Ipreo, +1 202 294 2529