Are you ready for the impending Tsunami? How Blockchain will Transform the Secondary Markets for Financial Assets

What’s the Blockchain  Buzz about?

As the media buzz continues to grow about Blockchain’s impact on the entire financial services industry, just about everyone is trying to figure why it matters and how it will affect them. As Blockchain’s impact will vary by industry vertical and use case, this series of blog posts will focus on a very specific set of use cases:

How blockchain will impact the trillions of dollars of loans (e.g. Assets) moved from originators to the secondary market for warehousing, whole loan sales, and asset securitizations.

We will call these “Secondary Market Assets”.

While it is still unclear exactly how and when Blockchain will be applied, it is clear Blockchain will have a profound impact on everyone in the Secondary Markets.  Given the need to focus on current results, few leaders in the industry have the bandwidth for complex and expensive technology projects without a clear ROI, use case and implementation path. However, ignoring the Blockchain momentum is like standing on the beach and watching an approaching Tsunami:

You can be drowned or grab a surf board and ride the wave. 

We call this surf board the “Bridge 2 Blockchain”.

We hope that this Blog series will provide some guidance on how to find a low cost, low-risk path to experience the benefits of Blockchain and inch towards incremental adoption based on experiences, measurable ROI and a clear road map.

So with that background, the Blog series will answer the following questions:

  • Why is Blockchain a paradigm shift that matters?
  • What aspects of Blockchain are relevant to Secondary Markets Assets?
  • What are the problems to implement Blockchain solutions for Secondary Market Assets?
  • How to overcome these challenges to implement a Blockchain solution for Secondary Market Assets?
  • How would a Secondary Market Asset System Work in Practice?
  • Could a Secondary Market Asset System be built for an ABS deal?

I hope to be an effective guide on this journey. I will draw upon my  20 years as a Wall Street Deal attorney having completed over $10B of ABS deals, structured finance, loan workouts, IPOs of 6 Subprime Mortgage and Auto Originators, M&A and Venture Financings. I will also tap into the 13 years experience in consulting, leading and innovating at fin tech start ups.

Please reach out to me with your thoughts and comments. I would appreciate your feedback.

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