SIA, a specialist European hi-tech company in payment services and infrastructures, controlled by CDP Equity, for the launch of a new platform available to banks and financial institutions, which enhances the ability to negotiate credits on blockchain.
The platform focuses on promoting greater liquidity to the benefit of SMEs, which takes on heightened importance as firms continue to navigate the pandemic.
Aiming to form a new ecosystem, the key ambition of the launch is to allow the players in the financial sector to have the ability to create a transparent, efficient and liquid secondary credit market.
Daniele Savarè, Director of Innovation & Business Solutions at SIA commented: “The creation of an advanced ecosystem for credit trading represents one of the first initiatives at international level based on blockchain, confirming SIA’s constant focus on the development and implementation of innovative solutions for the financial community.
“The main objective of this project launched together with Wizkey is to support banks in managing credits, especially non-performing ones, in a standardised and secure manner in line with the indications of European regulators.”
According to data provided by the European Banking Authority (EBA), the nominal value of loans under moratorium as of June 2020 totalled €871 billion. France has the highest level of exposure (255 billion euros), followed by Spain (187 billion euros) and Italy (156 billion euros).
Marco Pagani, CEO and founder of WizKey added: “The 2008 financial crisis has already shown us how inefficient management of non-performing loans can put the entire country system under stress and can cause serious systemic risks.
“It is increasingly evident that we need technologically advanced tools to deal with the next wave of NPLs, which is closely linked to the current recession and will manifest itself even more vigorously in the coming years. The partnership with SIA is a key starting point to promote a systemic initiative for all financial operators in the context of a new Italian digital renaissance.
“Thanks to an exponential improvement of the technology infrastructure, it is already possible to create a transparent, liquid and efficient secondary market for NPLs thus benefiting the entire country system.”