Select Page

Blockchain Syndicated Loans

International capital markets manage billions of dollars in syndicated loans annually. The large scale of these loans necessitates the participation of multiple banks and financial institutions, resulting in increased risk and expense from manual stakeholder coordination. Blockchain technology digitization and standardization offers innovative solutions to the challenges faced by the syndicated lending industry.

 

Streamlining the issuing, servicing and management of agent banks

The Problem

The execution and administration of syndicated loans are cumbersome and expensive, depending on a variety of intermediaries, proprietary technologies, and legacy systems. Most deals are led by lead agent banks, who bear KYC ‘s liability, record management, servicing, and lender and secondary agent payments. Considerable manpower is needed to ensure the proper execution of documentation work, taking time, and increasing the risk of human error.

The Solution

Digital asset standardization between lead agents, borrowers, and secondary agents will significantly reduce the risk and manual effort required to facilitate key components of a syndicated loan deal such as KYC, record and document management, operation, and payment. A blockchain-based software technology enables data integrity and accuracy, encryption and cost savings.

Improved document management and document security

The Problem

Document management is a persistent problem in every industry involving the participation of many stakeholders. There are many identical and near-identical copies of documents across stakeholders, and verification of the “truth” requires collaborative trust and consensus that can break down in transactions of larger or higher stakes. Data reconciliation requires considerable time and effort, and can often involve lawyers and other third parties on an expensive level.

The Solution

WithConvexity document management system allows stakeholders to be assured of the latest version of a document, as well as the unchanging history of past versions. The ‘single source of facts’ approach eliminates data reconciliation time and cost across stakeholders, and eliminates the reliance on lawyers or third parties.

The Problem

Document management is a persistent problem in every industry involving the participation of many stakeholders. There are many identical and near-identical copies of documents across stakeholders, and verification of the “truth” requires collaborative trust and consensus that can break down in transactions of larger or higher stakes. Data reconciliation requires considerable time and effort, and can often involve lawyers and other third parties on an expensive level.

The Solution

WithConvexity document management system allows stakeholders to be assured of the latest version of a document, as well as the unchanging history of past versions. The ‘single source of facts’ approach eliminates data reconciliation time and cost across stakeholders, and eliminates the reliance on lawyers or third parties.

Improve document management and document security

Work with us to launch your blockchain solution for syndicated loans.

Benefits of Blockchain in Syndicated Loans

Efficiency of Process

Smart contracts are used to simplify lead agent processes, including KYC / AML, arbitration, register management, payment settlement, transaction tracking and reporting.

Reduced Costs

Automation of the process eliminates the need for manual processes and intermediaries from third parties, thus reducing time and costs significantly.

Reducing risks

Reduced settlement times, chain title monitoring and operational costs ensure that stakeholders face less risk than is historically required, reducing related costs.

Settlement in Near Real-time

Removing the gap between payment and delivery by near-real-time settlement reduces liability and the associated costs at all loan syndication stages.

Accessibility of data

Network transparency and real-time information allow better communication and implementation across syndicated loan stakeholders.

Document Management

A blockchain-based record management framework guarantees that a common and verifiable source of reality is accessible to all stakeholders.

Explore More Blockchain Solutions

Global Trade and Commerce

Big trading companies around the world recognize Ethereum ‘s disruptive influence in running global supply chains, controlling trade financing, and enabling new business models.

Payment and Money

Blockchain technology is ushering in a more efficient and secure global payment infrastructure from remittances to micro-credits and more.

Real Estate

The transformative impact o blockchain is recognized by commercial enterprises and real estate professionals to optimize retail and commercial property sales and increase access to real estate funds and investment opportunities.

Pin It on Pinterest