SIA, an Italian company specializing in electronic payment services, is working on a blockchain-based system to enable secondary loan trading.
The upcoming platform will allow banks, funds and financial firms to negotiate secondary loan transactions over blockchain, SIA announced on Tuesday.
An SIA spokesperson told Cointelegraph that the company plans to test the platform in the second quarter, while expecting a full launch in the second half of the year.
SIA’s new loan trading platform is being developed in collaboration with the fintech startup WizKey. The Milan-based company develops financial solutions with a focus on structured financial products as well as credit management and transfer.
By implementing the blockchain, SIA intends to provide financial companies with immediate and secure access to loan portfolios as well as the underlying data and documentation. “The certification of information and workflows through blockchain gives all secondary market buyers confidence that the data is consistent and certified, which increases transaction speed and market liquidity.”said a SIA representative.
Marco Pagani, CEO and founder of WizKey, said the blockchain project aims to create “a transparent, liquid and efficient secondary market for NPLs that will benefit the entire system in the country”.. Daniele Savarè, Director of Innovation and Business Solutions at SIA, also pointed out that the project will be developed in a standardized way according to European regulations.
SIA has previously worked with blockchain-related developments. In June 2020, SIA completed an inter-chain interoperability project aimed at providing services to banks and financial institutions.