Syndicated and Corporate Loans

Symbiont is revolutionizing syndicated loans through Synaps, a joint venture with IPREO.  Synaps uses Symbiont blockchain technology and smart contracts to transform data management and trade settlement in the syndicated-loan market.
 

Today's Scenario

A popular alternative to corporate bonds for raising capital, the syndicated loan market has witnessed tremendous growth over the past two decades. The market is affected by excessive costs via a high degree of duplication of information among its numerous participants, inefficient manual processes, and inherently high levels of complexity which can drive trade settlement to twenty days or more. Syndicated loans have a record unsettled exposure of more than $70 billion, over twice that of high-yield bonds.

Symbiont Technology Allows:

  • Deduplication and digitization of all loan information on a blockchain network
  • Reduction of extant ledgers and databases from a dozen or more per firm to just one that is shared by all firms in a network
  • Vast reduction of trade times through fully electronic clearing and settlement
  • Highly reduced costs due to process automation and simplified workflows

Distribution of Index Data

Today's Scenario

There are now more indices than listed equities in the U.S. Unlike public stocks, each index has a custom definition only available from its publisher.  Getting the constituent data requires a mix of emails, bespoke data feeds, and proprietary index platforms. It also needs constant reconciliation to stay up-to-date with changes, rebalances, and corporate actions.

Symbiont Technology Allows:

  • A permissioned network for posting index definitions and updates
  • Cryptographically secure transmissions
  • Single source of truth for index content
  • Complete, indelible history of index definition and changes
  • Ability to transform data pulls on the fly with smart contracts

Symbiont’s blockchain software was used in an initial deployment to distribute index data from the Center for Research in Security Prices (CRSP) to Vanguard.



Private Equity and Crowdfunding

Today's Scenario

Using a spreadsheet to track investor information is standard practice for many private companies today. Many companies have made mistakes in their corporate records--ranging from more shares issued than authorized (especially pertaining to option pools), to outdated cap tables, to incomplete documentation. Symbiont offers a blockchain platform that automates cap table management and corporate governance, and these are just the beginning of what is now possible, thanks in part to the “Delaware blockchain amendments,” which took effect on August 1, 2017. Securities administration can be straight-through processed during the entire lifecycle of a security, from their genesis moment until maturity, and stakeholders have a perfect audit trail.

Symbiont Technology Allows:

  • Complete white-label solution for registered agents and law firms to offer to their private company clients, creating an opportunity to offer these new services without building an in-house solution
  • Secure, private document management service
  • Developers that have business requirements to build out private equity and crowdfunding platforms can do so via our API
  • Secondary market trading capabilities with regulatory guardrails that tracks beneficial ownership of securities in real-time

Corporate Debt

Today's Scenario

Illiquid fixed income and alternative assets represent $100 trillion in notional value, which is over five times the size of the U.S. equities market. Trading in these asset classes is limited by opaque pricing, large information asymmetries, and a high incidence of contract and governance events. Due to the high cost of capital, the legacy business model of dealers holding securities in inventory to provide liquidity to the market is becoming increasingly untenable.

Symbiont Technology Allows:

  • Fee collection at key workflow points (bond issuance, primary market allocation confirmation, trade confirmation, etc)
  • Real-time primary and secondary market operations with greatly reduced settlement times
  • Superior counterparty discovery and vastly more efficient and lower-risk secondary markets, without inventory requirements placed on dealers
  • Full automation of any and all corporate actions

Asset Digitization

Today's Scenario

Today, it is a challenge for typical investors to get exposure to fixed or in situ assets while, at the same time, owners of such assets often struggle to access liquidity. Asset digitization can provide investors with exposure to illiquid assets in a form that can be easily registered, traded and transferred. It also provides owners of illiquid physical assets with an opportunity to access new sources of liquidity. Symbiont’s blockchain platform is ideal for asset digitization because it provides an immutable record of the origination and provenance of digitized assets as well as a tamper-proof repository for all documentation supporting a given origination.

Symbiont Technology Allows:

  • Investors to gain exposure to illiquid physical assets in a fungible and easily transacted form
  • Owners of existing physical assets to access liquidity by selling or pledging digitized assets backed by their physical collateral
  • Digitized assets to be originated and tracked on Symbiont’s blockchain platform where they may be securely transferred on a peer-to-peer basis
  • Trades involving digitized assets to be settled in a highly efficient and automated manner

Symbiont Asset Digitization Partner(s):