Today it was announced IBM’s enterprise blockchain is being used in a new platform for securitizing credit. Italian firm Centotrenta Servicing has built a credit securitization management platform, HyperMast STS.
Centotrenta is an administration company that manages 200 Italian securitizations a year and is servicing portfolios totaling €15.6 billion ($16.9 billion). Its website shows much of its business is in non-performing loans, although Centotrenta also does performing loans, residential and commercial mortgage securitization as well as leasing and receivables.
Centotrenta’s role is to collect money from the portfolio and to monitor compliance of the securitization. BNP Paribas Securities Services is involved in the project as an account and paying agent bank. The Italian firm says the ecosystem includes other banks, advisors and law firms. It hopes to attract more participants such as servicers like itself, credit providers, investors, intermediaries and originators.
This is the same sector that attracted much of the blame for the 2008 financial crisis. Blockchain may broaden the scope for securitization. But questions continue to be asked. A major issue is whether the loan originator takes the same degree of care if they plan to offload the debt in a securitization.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
