In December last year, the digital syndicated loan platform Versana went into production. Bank of America, Citi, Credit Suisse and J.P. Morgan founded the company to move away from manual processes. Now it has processed more than 1,500 loans worth $900 billion. The solution uses Digital Asset’s DAML smart contract language for workflows and Versana is part of the Canton blockchain network for interoperability.
Syndicated loans are inherently messy from a data administration perspective. While the borrower might only liaise with the arranging bank, the massive loans are sliced and diced amongst numerous lenders. As the borrower draws down the loan and makes repayments, all the parties to the loan must keep track of what’s happening, including lenders, the agent and the trustee. Often the details are only shared monthly or quarterly.
Hence Versana aims to provide a single repository to enable everyone to track the movements and status in real time.
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