The Chamber of Digital Commerce, the trade association representing the blockchain industry, and the Structured Finance Industry Group – SFIG – announced the formation of a strategic partnership focused on advancing the use of blockchain technology in securitization markets. The partnership will commence with the publication of a co-sponsored white paper, titled ‘Applying Blockchain in securitization: opportunities for reinvention’ and a series of educational activities at SFIG Vegas 2017 which begins yesterday in Las Vegas, Nevada.
With the goal of bringing the structured finance and blockchain communities together, the two organizations will collaborate on research efforts and publications, joint educational programs and online forums.
In addition to a detailed examination of how blockchain can play a role at each stage of the securitization lifecycle, the white paper, prepared by Deloitte, outlines a number of distinct benefits for blockchain in structured products: a single, consistent source of information, complete, immutable audit trail, better valuation and price discovery, speed, certainty and security.
Richard Johns, SFIG Executive Director, remarked: “I am pleased to announce this strategic initiative with the Chamber of Digital Commerce, which has established an important position in representing the growing blockchain industry. Partnering with the Chamber is a key part of our focus on being a central resource of forward looking education to all market participants. With this partnership we can create new, forward-thinking and educational opportunities for our members enabling them to stay fully informed of how technology is impacting their business. Today’s whitepaper is just the beginning of what we expect to be a very active and productive partnership.”
Founder and president of the Chamber of Digital Commerce, Perianne Boring said: “The securitization process is an ideal candidate for the efficiencies of distributed ledger technology. Blockchain platforms create a more transparent and secure marketplace allowing the industry to provide better products more securely at lower cost. This will also enable the market to more efficiently comply with regulations, while at the same time allowing automation to create significant efficiencies for the role of the regulator itself. Our partnership with SFIG is an opportunity to accelerate the understanding and adoption of blockchain technology in this sector.”