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Ipreo, Symbiont Collaborate On A New Blockchain Venture
Ipreo, a leading global provider of financial services technology, data and analytics, and blockchain startup Symbiont have joined forces to create a new company to overhaul conventional and expensive manual processing in the $3 trillion global syndicated loans market.
Ipreo will contribute LTS, a loan trade 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 will contribute its blockchain expertise and development of 'SmartLoans', the first smart contracts for the loan market. Smart contracts remove the need for third-party intervention, as compared to token-based blockchain efforts that just offer incremental efficiencies to the ledger system used at present.
The integration of Ipreo's latest loan settlement platform and Symbiont's smart contracts will enable delivering fully-automated settlement and maintenance, generating millions of dollars in potential annual savings.
"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 yet-to-be-named business will be headed by Joe Salerno, an industry veteran who currently heads loan trade settlement at Ipreo. Robby Dermody, co-founder of Symbiont, will be COO.
"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.