WSFS Institutional Services, a unit of U.S.-based WSFS Bank, yesterday declared a partnership with Intain, a blockchain firm for automating capital market transactions. The deal is to build a tool for trustee recording of asset-backed security transactions on a DLT (distributed ledger technology) platform.
Among the numerous services it offers, WSFS Institutional Services provides owners and indenture trustee services for asset-backed securities (ABS). WSFS and Intain intend to automate part of this service utilizing blockchain to decrease reconciliation.
“Most technological innovation in the industry to-date has been focused on front-end loan originations. Our work with Intain will allow us to produce trustee reports faster, with more accuracy and access to loan-level detail to investors,” stated Kristin Moore, Senior Vice President, Director, Corporate Trust, WSFS Institutional Services.
As an illustration of automation, smart contracts will be utilized to calculate payments. The platform will link to issuer and servicer systems to obtain loan data and ongoing servicing data.
Delaware based WSFS Bank is among the oldest locally managed banks in the U.S. The parent company, WSFS Financial Corporation, allowed a range of financial services and had $20.7 billion in assets under management and administration at the end of 2019.
India-based Intain integrates AI and blockchain to provide services such as REITs, asset securitization, warehousing, and bond issuance. The company is a member of Hyperledger.
“When parties work of the same source data, you can then have true automation, and distributed ledger provides an excellent means of achieving that,” said Siddhartha, Founder, and CEO of Intain.
Meantime, this is not the first time WSFS has forayed into the blockchain. It is serving as a trustee in a $1billion asset-based financing facility to Figure Technologies, the blockchain fintech offering home equity, mortgage, and student loan refinancing solution. Jeffries is providing funding.
In Italy, Centrotrena Servicing, which controls asset-backed securities, is developing a credit securitization management platform. It securitizes non-performing loan portfolios, among others.
Both Fitch and Moody’s have examined the potential of blockchain technology in the asset-backed security sector.
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