Cadeia GmbH can set a company milestone. The company has now launched “the first complete blockchain-based loan securitization” via its own platform.
The Munich fintech Cadeia celebrate together with the Bank Frick a great corporate success. As the company BTC-ECHO explained in advance in a press release, the first completely blockchain-based securitization is being launched together with the Liechtenstein partner. The main aim of this is to save time and money in securitization transactions. Not only banks and financial intermediaries benefit from the move, but also small and medium-sized companies.
The first blockchain loan securitization goes by the name GreyPeak 2021-1, the subject of which were traditional, unsecured corporate loans from Bank Frick. Cadeia’s in-house solution – die Digital Services Platform (DSP). The basis for this is the Ethereum blockchain, which processes the entire transaction using a series of automatically created smart contracts.
Cadeia: “This transaction goes much further technologically”
It is true that blockchain-based securitization transactions have already existed before. The smart contracts used there, however, only tokenize receivables or securities. Cadeia take the next step here. The press release states:
This transaction goes much further technologically. Because Cadeia also uses the smart contracts for the automated and rule-based control of payment flows in accordance with the previously agreed transaction conditions (covenants) and the associated cash flow waterfall structures.
Cadeia GmbH
Both Cadeia and Bank Frick were extremely satisfied with the result. Julian Gretzinger, Head of Capital Markets at the Liechtensteiner Bank, praised the transaction as: “a real step forward that offers the financial industry great added value”. Rolf Steffens, Managing Director of Cadeia GmbH, now sees a new chapter in the history of the rapidly developing blockchain and DLT use for originators and investors.
In general, more and more players from conventional finance are now venturing into blockchain-based solutions. This is how the launched DekaBank recently issued a green bond on December 6th via its own blockchain platform.