Syndication is getting electronified
Technology makes syndication more efficient while reducing fixed costs. Using online platforms, including Alternative Trading Systems (ATSs), syndication activities can be conducted at a fraction of the historical cost, while increasing the speed and accuracy for all parties. While some regulatory questions might need to be answered, but the opportunity is clear.
Tokens and wallets will support more efficient transactions
Developments like tokens and wallets allow for near-instantaneous matching and transfer. This reduces the need for intermediaries and gives way to more client-to-client activity.
Wider range of potential investors in different asset structures
Developments in centralized trading platforms reduce barriers to smaller, growing players. Consider a small insurance company in Kansas. Large investment banks are typically looking for large commitments when conducting new issue or reset transactions. Technology platforms allow for democratic access, giving smaller accounts a chance to participate in an equitable way
Blockchain can be used as a risk management tool
Distributed ledger technologies, like Blockchain, enable straight-through, peer-to-peer processing. This creates an immutable audit trail of transactions, helping organizations lower settlement and compliance costs.
Tokenization helps protect sensitive data
Tokens, digital codes on the blockchain that represent ownership, remove sensitive information from business systems and replace them with an undecipherable token. This reduces the risk of data breaches and the need for multi-factor authentication