Blockchain in securitisation
The reinvention of the structured finance industry?
The industry is at an early stage in the evolution of blockchain for structured finance, but blockchain, along with smart contracts, promises to transform many activities in the securitisation lifecycle. The question for the securitisation industry is not if, but when? And it could suddenly be fast approaching.
In other parts of credit treasury sector (e.g. corporate “Schuldschein”) pilots have already been launched.
The Structured Finance Industry Group and the Chamber of Digital Commerce commissioned Deloitte & Touche LLP in the US to examine the application of this disruptive technology in securitisation.
After months of analysis and consultations with various industry constituents involved in different stages of the securitisation lifecycle, there is little doubt that blockchain and smart contracts (a key technology that enables many blockchain applications) hold their promise. Blockchain has the potential to streamline processes, lower costs, increase the speed of transactions, enhance transparency, and fortify security.