Yesterday Brazilian bank Itaú Unibanco and Standard Chartered announced they have partnered to develop a blockchain syndicated loan platform for loans syndicated to a smaller group, called club loans. In a pilot transaction, Itaú raised a $100 million loan syndicated with Standard Chartered and Wells Fargo, according to Reuters.
Arranging syndicated loans is an intensive communication process and can involve thousands of emails. Hence blockchain cuts down the back and forth and means that each party can track each step of the process.
However, while negotiation was conducted on the blockchain, settlement was not, though it could be in the future.
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