Blockchain based syndicated loans possible soon

Reported by: |Updated: August 22, 2017

A Credit Suisse-led consortium of banks is preparing to launch a commercial platform for blockchain-based syndicated loans. News reports quoted Emmanuel Aidoo, who leads Credit Suisse’s blockchain efforts, as saying the experimentation is moving ahead and few dozen smaller loan transactions through a distributed ledger platform could be possible soon where the participating banks would be the agents. The group had completed their second phase of testing in March and a syndicated loan market where multiple lenders pool their capital for individual borrowers would be built on blockchain. The group hopes the technology can reduce barriers between counterparts, reducing both time and cost in making the necessary capital available.