Ipreo and Symbiont announced today that they are creating a new company to overhaul antiquated and costly manual processing in the $3 trillion global syndicated loans market. By integrating Ipreo’s latest loan settlement platform and Symbiont’s smart contracts, the new business will deliver fully-automated settlement and maintenance, generating tens of millions of dollars in potential annual savings.
Settlement periods of 20 business days or more threaten the continued growth of the loan market. For the sell-side, the delays tie up precious capital. For the buy-side, settlement uncertainty confounds cash management and necessitates costly credit lines.
Ipreo is the only technology provider to enable new issue workflow across the equity, fixed income, municipal and syndicated loan markets. The top 10 bank arrangers use its existing syndicated loan platform, while the top 20 tier-one investment banks are clients of the firm.
Ipreo will contribute LTS, a recently developed loan settlement platform that incorporates a patented process. Its innovative solution brings securities lending to the loan market, facilitating borrows when sellers don’t have the loan asset available for scheduled settlement.
Symbiont is contributing its blockchain expertise and development of ‘SmartLoans’, the first smart contracts for the loan market. Smart contracts eliminate the need for third-party intervention, in contrast to token-based blockchain efforts that merely provide incremental efficiencies to the ledger system currently used.
“We are delighted to be working with Symbiont to create an industry-wide solution to the loan settlement problem,” said Kevin Marcus, President and COO of Ipreo. “With LTS, we addressed the legal and process problems that have plagued loan trade settlement. Our joint venture with Symbiont marries this solution with the transformative power of blockchain technology.”
The new business, to be named, will be headed by Joe Salerno, a 25-year industry veteran who currently heads loan trade settlement at Ipreo. Robby Dermody, co-founder of Symbiont, will be COO.
“There’s a lot of talk about blockchain but little evidence yet of digital transformation on the front lines, so it’s great to lead the way,” said Mark Smith, CEO and co-founder of Symbiont. “Ipreo is a perfect partner. Unlike some of the more vocal blockchain start-ups, it has an established track record and already plays a vital role in the smooth operation of the loan markets.”
“This business will benefit the entire syndicated loan market, from issuers through investors and regulators. Not only will it help the sell-side save tens of millions in capital costs, but loan portfolio managers will no longer have to endure the drag on yield caused by large cash buckets and costly credit lines,” said Salerno.
Syndicated loans have a record unsettled exposure of more than $70 billion, over twice that of high-yield bonds.
- Blockchain Startup Sphre Announces ICO (Crowdsale) for Digital Identity Platform Called Air - March 22, 2017
- Kestrel sign ups to MTI’s blockchain driven solutions to deliver global growth - March 22, 2017
- The G20 Countries Should Investigate Blockchain Technologies to Build an Inclusive, Transparent, and Accountable Digital Economy for All - March 21, 2017
- Particl, a Distributed Marketplace Rethinking Privacy’s Future – Announced Seed Round - March 21, 2017
- ZrCoin To Do Initial Coin Offering (ICO) to Crowdfunds Commodities Option - March 21, 2017
- Canada’s Scotiabank and AlphaPoint Announce Successful Blockchain Trial - March 21, 2017
- Canada’s SecureKey taps IBM to put identity on the Blockchain - March 21, 2017
- Blockchain Startup Humaniq Launches London Office - March 21, 2017
- QRL Recruits Testers for High Security Quantum-Resistant Blockchain - March 20, 2017
- Blockchain of Things, Inc. Releases Paw Advanced REST Client Integration - March 19, 2017
- ConsenSys Named Official Blockchain City Advisor for the City of Dubai - March 16, 2017
- Bloq Launches BloqLabs to Connect Enterprises with Open Source Blockchain Innovations - March 16, 2017
- Multi-Million Dollar Research Institute Launched to Explore Blockchain Use Cases, Opportunities and Challenges - March 16, 2017
- Chamber of Digital Commerce Forms the Blockchain Intellectual Property Council - March 16, 2017
- Orebits & Symbiont Deploy Blockchain Technology to Digitize Gold Ownership - March 16, 2017
- Blockchain Capital to Raise its Third Fund via a Digital Token Offering in The First Liquidity-enhanced Venture Capital Fund - March 16, 2017
- The Exscudo Channels App Is A New Mobile Wallet And Secure Messenger - March 14, 2017
- Dao.Casino – Decentralising the Gambling Economy - March 14, 2017
- Chain of Points Adds American Internet Entrepreneur Jeff Pulver to Board of Advisors - March 14, 2017
- Nasdaq Releases NYIAX – A Blockchain-Enabled, Cloud-Based Media Trading Platform - March 14, 2017
- Lunyr Announces Crowdsale for the First Decentralized World Knowledge Base on Ethereum - March 14, 2017
- Coinsource, World’s largest bitcoin ATM network, Completes Historic Bulk Installation on US West Coast with 35 ATMs - March 14, 2017
- Bitwala Offers Bitcoin to M-Pesa Services in Kenya, Nigeria, Uganda, and Tanzania - March 12, 2017
- US SEC Regulators Reject Bitcoin ETF, Price Plunges, Recovers - March 11, 2017
- Google’s DeepMind plans Blockchain Health Record Tracking for Hospitals - March 10, 2017
- Coalition Forms to Address Digital Asset Taxation Uncertainty - March 10, 2017
- Livecoin, the Fourth Largest Altcoin Exchange Is Now Available in Eight Languages - March 9, 2017
- Australia Releases Blockchain Standards Roadmap - March 6, 2017
- Hyperledger Fabric Graduates with Honours – It’s Live! - March 4, 2017
- TaaS, the First Fully Transparent Closed End Fund Dedicated to Blockchain Assets, Adds International Banking and Marketing Experts as Advisors - March 2, 2017
- Kraken Acquires Cryptowatch and Launches New Trading Platform - March 1, 2017
- Switzerland’s Crypto Valley Association Founded To Build World’s Leading Blockchain and Cryptographic Ecosystem - March 1, 2017
- Massive Launch by Blockchain Industry for New Enterprise Ethereum Alliance - March 1, 2017
- Monax Joins Hyperledger Project, Brings Ethereum Technology - February 28, 2017
- Chain of Points Adds Internet Pioneer and iPayYou Founder Gene Kavner to Board of Advisors - February 27, 2017
- Chamber of Digital Commerce and Structured Finance Industry Group Partner to bring Blockchain to Securitization - February 27, 2017
- Blockchain Startup Bloq Acquires Blockchain Analytics Pioneer Skry - February 27, 2017
- Edgeless.io Launches its ICO to become the first fully transparent Casino, Offering 0% Edge - February 27, 2017
- Storj Labs Raises $3 Million in Seed Funding - February 26, 2017
- Northern Trust And IBM Pioneer Use Of Blockchain Technology To Help Transform Private Equity Administration - February 26, 2017
- 0x – An Open Protocol for Decentralized Exchange on the Ethereum Blockchain - February 26, 2017
- Global Blockchain Project FERMAT Announces Significant Alpha Release for the “Internet of People” - February 26, 2017
- Blockchain Startup Peerplays Raises $4m Before ICO Even Kicks Off - February 26, 2017
- Numerai Launches Cryptocurrency and New Hedge Fund Built By Data Scientist Network - February 26, 2017
- Disrupt the VC Industry? Brock Pierce and Blockchain Capital to Launch Own Cryptocurrency and ICO - February 26, 2017
- SoftBank, Sprint and TBCASoft Partner in Blockchain Technology for Telecom Carriers - February 25, 2017
- Lisk Introduces New Blockchain Technology Update - February 25, 2017
- Dash Partners with BlockPay to Enable Point of Sale Purchases at Brick and Mortar Stores - February 25, 2017
- Blockchain Interaction Unit (BIU) – No Internet, No Mobile Phone, No Computer. No Problem. - February 25, 2017
- Blockchain Banking Consortium R3 Gets Into Semantic Tornado Over Blockchain – Bitcoiners Jeer from Sidelines - February 25, 2017