According to the reports by Reuters, Wall Street's structured finance companies have entered into a collaboration with the trade association for the blockchain industry, in a move to explore the potentials of distributed ledger technology in streamlining the $1.9 trillion U.S. securitization market.
The report said that the collaborative efforts involve Chamber of Digital Commerce, the first Washington DC-based trade association representing the blockchain and digital asset industry, and member-based trade industry advocacy Structured Finance Industry Group (SFIG), where they will work together on research and other projects. The partnership project is set to be announced in few days, the groups stated. SFIG is focused on improving and strengthening the broader structured finance and securitization market.
The partnership effort started with the publication of a study looking at how blockchain technology can help in simplifying the securitization market, which despite its size, remains highly manual and opaque.
More financial institutions are ramping up their investments in blockchain sector, hoping that it can help in making some of their processes more efficient and cheaper to manage.
Also, a study by Deloitte on blockchain mentioned that the technology helps in increasing the certainty of securitization transactions as well as improve market transparency.
