Blockchain enters loan trading space with new Finzat-THC partnership
Blockchain technology has found a new application yet again, as Finzat partners with Thomas Ho Co (THC), an asset liability management (ALM) solutions provider, to improve its whole loan trading network. Finzat is a New York-based company that offers blockchain solutions to financial institutions, initially focused on the U. S. residential and commercial mortgage market.
This new tie-up marks the world’s first loan transaction network enabled by blockchain technology, according to an official statement. The integration of Finzat’s advanced technology with THC’s ALM solutions is expected to enhance transparency and profitability.
This partnership will also benefit from the expertise of Dr. Thomas Ho, president at THC and a popular finance consultant. According to Finzat CEO Dr. Gnanesh Coomaraswamy, Ho ”is a proven expert in whole loan trading and balance sheet analysis. Adding Finzat’s experience in mortgage finance and blockchain know-how will result in substantial synergies.”
Types of Loans
This latest development gives Finzat an edge to compete in the residential mortgage market of U.S., which is worth $10 trillion. The THC whole loan transaction network involves vehicle loans, small business loans, residential loans and commercial real estate loans. The company also provides in-depth balance sheet analytics.
“Finzat will complement THC’s asset-liability management analytical and loan transaction technologies,” Dr. Ho said in a statement.
This collaboration has opened the door for blockchain technology to venture into the domain of loan trading. This innovation is increasingly making its way to various industries as more businesses explore the application of this technology in their domain.
Recently, a U.S. national milk cooperative – Dairy Farmers of America – announced that it was exploring this technology to improve transparency in its supply chain.
Blockchain has even stepped into the real estate space in Australia, with retail asset manager Vicinity planning to integrate this technology with its energy network as part of its $75 million solar program.
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