Blockchain and smart contract technology enable large lender groups to share the authoritative records of syndicated loan facilities.
Syndicated loans are private instruments with relatively complicated structures. These features help make the asset class appealing to borrowers and to investors. Yet, strict privacy restrictions and complex business logic make loan asset information difficult to obtain and expensive to administer. Synaps eases that data management burden in the following ways:
- Accuracy. Agents, lenders and trade counterparties write data directly to the ledger, eliminating the cost and risk of data re-entry.
- Authenticity. All ledger transactions are cryptographically signed by the data owner, which ensures the information is genuine.
- Privacy. Smart contracts create secure groups, so that only parties with proper permissions can decrypt ledger data.
- Timeliness. Ledger data is accessible immediately without delays associated with data re-entry, transmission or validation.
- Consistency. All parties execute the same business logic encoded into the smart contract, thus eliminating erroneous or imprecise calculations.
- Availability. Encrypted transactions are shared across multiple nodes, which insulates data from failure of particular servers.