Blockchain Loan Registry Launched By Global Debt Registry

News | June 28, 2018 By:

FinTech firm Global Debt Registry (GDR) has launched its decentralized loan registry aimed at the asset-backed securities (ABS) market.

Global Debt Registry provides asset certainty for institutional investors and warehouse lenders in the online lending market. It ensures that the data underlying loans is real and accurate by validating loan information against trusted third-party data sources. GDR’s tools help both investors and warehouse lenders better manage risks associated online consumer loans and enable online lenders to attract more permanent capital.

Built and tested on the IBM blockchain platform starter plan, GDR’s decentralized loan registry enables permissioned parties to access trusted data across the loan lifecycle. It was created to verify and provide transparency for loan data on the cloud-based IBM blockchain platform. The loan registry aims to provide new levels of efficiency to the $400 billion ABS market.

“Currently, the ABS market is dependent on a large ecosystem of service providers across a long, siloed supply chain starting at loan origination,” GDR said. “The process is riddled with repetitive tasks, opening participants up to slow transactions, errors and inconsistent information. GDR’s decentralized registry has more than 700,000 loans registered to date, across multiple credit facilities, primarily focused on digital lending.”

Charlie Moore, President of Global Debt Registry, said that the tokenization of loans and supporting loan data represents a huge opportunity to bring efficiency and speed to the structured credit industry.

“Blockchain-based loan records will not only enhance asset integrity, but enable cost savings, automation through smart contracts, faster deal execution and new structured credit products,” Moore said.

Several investment banks are already using GDR’s decentralized registry to manage collateral positions more effectively, across many originators including Avant, an online lender in the US.

“Avant is committed to serving its capital partners with innovative technical solutions to maximize transparency and ease of collateral management, as further demonstrated through our use of GDR’s blockchain based registry,” said Kevin Friedrich, VP Finance & Treasury from Avant.

Marie Wieck, General Manager of IBM Blockchain, said GDR’s decentralized registry will allow the market to preserve the integrity of assets, proving the value of blockchain in streamlining manual, repetitive processes in these complex supply chains.

“One of the strongest use cases of blockchain that IBM has seen in working with hundreds of clients is its ability to trace the origin of a variety of financial assets,” said Wieck “Global Debt Registry is a pioneer in the space of loan provenance and is using blockchain to reinvent the entire business model by providing all relevant parties a shared view of loan data.”