Payments major SIA to launch DLT-based secondary credit marketplace

Italian financial services firm SIA plans to launch an Ethereum-based platform for secondary credit trading in the second half of 2021.

SIA, an Italian company specialising 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 traders to trade secondary credit transactions via blockchain, SIA announced on Tuesday.

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A spokesperson for SIA told Cointelegraph that the company plans to test the platform in the second quarter, while a full-scale launch is expected in the second half of the year.

SIA’s new credit trading platform is being developed in partnership with financial technology startup WizKey. The Milan-based firm is creating financial solutions with a focus on structured finance products and credit management and transfer.

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By implementing 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 workflow through blockchain gives all secondary market buyers the confidence to know that data is consistent and certified, increasing transaction speed and market liquidity,” said a representative of SIA.

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WizKey CEO and founder Marco Pagani said the blockchain-powered project aims to create a “transparent, liquid and efficient secondary market for bad loans, thus benefiting the country’s entire system”. Daniele Savarè, director of innovation and business solutions at SIA, also noted that the project will be developed in a standardised way in accordance with European regulations.

SIA has previously worked with blockchain-related developments. In June 2020, SIA completed a project on cross-chain interoperability, targeting services for banks and financial institutions.