Global Debt Registry Develops Blockchain-Based Proof Of Concept For Online Lending

Jun 28 2017 | 7:50pm ET

Loan data specialist Global Debt Registry has completed a proof-of-concept that utilizes the blockchain to provide investors with an immutable audit trail and a single source of core loan data. 

The firm’s inaugural blockchain proof-of-concept (POC) lays the groundwork for providing investors and senior lenders in the online lending space with a safe and secure way to confirm loan ownership and collateral interests across companies within the ecosystem, GDR said. 

In developing the blockchain POC, GDR worked with three leading blockchain platforms - Hyperledger, Ethereum and Chain. The firm has also been participating in strategy development with the Wall Street Blockchain Alliance and Structured Finance Industry Group (SFIG) Blockchain Task Force, two organizations committed to increasing industry adoption of distributed ledger technology across financial markets.

The company's blockchain efforts come as the firm’s partnership network has expanded, adding industry leaders TransUnion, Equifax, IDAnalytics, Avant and Prosper in recent months.

“We are excited to be driving the technological innovation of blockchain, bringing new value to the world of online lending,” said Charlie Moore, president of GDR. “By harnessing blockchain capabilities and applying them to our collateral pledge management and asset validation tools, we are able to deliver new levels of confidence and certitude to our partners in the investor ecosystem.”

“We see the real value of blockchain, and it’s much more than a buzzword or an industry trend,” said Robert Brown, Chief Technology Officer, GDR. “Blockchain technology is ideally suited to the set of solutions we offer – it enables our clients to have an immutable, consistent view of the state of a loan across its entire lifetime, thereby increasing trust and certainty around lending activity.

Backed by a $5 billion private equity firm and led by a team of senior executives from Thomson Reuters, Bank of America, and Barclays, New York-based GDR utilizes cutting-edge technology to provide independent asset certainty and validation services across entire portfolios of loans in real time. The company’s asset certainty tools require no technology investment, using existing data structures and processes to streamline the flow of information from the lender to the investor.

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