Fintech Cadeia has securitized business loans via blockchain for the first time, bundling them into one security and processing all related payment flows via blockchain. Fintech Cadeia’s partner was Liechtenstein-based Bank Frick, which specializes in blockchain technology. The startup Cadeia operates a digital service platform that can be used to create, issue and settle complex financial products such as asset-backed securities (ABS).

This form of loan securitization has the advantage of saving time and money, it says. Furthermore, it would allow banks and financial services providers to cost-efficiently package smaller loan volumes into securities tokens. In the case of the current transaction, the loans are traditional unsecured corporate loans securitized by Bank Frick as the organizer and servicer.