SIA, an Italian company specializing in electronic payment services, is working on a blockchain-based system to enable secondary credit trading.
The upcoming platform will allow banks, funds and financial operators to negotiate secondary credit transactions through the blockchain, SIA announced on January 26.
A spokesperson for SIA told TBEN that the company plans to pilot the platform in the second quarter of 2021, while the full-scale launch is expected in the second half of this year.
SIA’s new credit trading platform is being developed in collaboration with fintech start-up WizKey. The Milan-based company develops financial solutions focused on structured finance products and credit management and transfer.
By implementing the blockchain, SIA intends to provide financial operators with instant and secure access to credit portfolios as well as the underlying data and documentation. “Certification of information and workflows through the blockchain provides all secondary market buyers with the confidence to know that the data is consistent and certified, increasing transaction speed and market liquidity,” said a representative. by SIA.
WizKey CEO and Founder Marco Pagani said the blockchain-powered project aims to create a “transparent, liquid and efficient secondary market for NPLs, thereby benefiting the entire national system.” Daniele Savarè, director of innovation and business solutions at SIA, also indicated that the project will be developed in a standardized way in accordance with European regulations.
SIA has already worked on blockchain-related developments. In June 2020, SIA completed a cross-chain interoperability project targeting services for banks and financial institutions.