Zenith Service has completed the first “proof of concept” securitization deal using the blockchain through the DLT technology “Algorand”.
The transaction was carried out in mirroring respect to a real traditional deal, which saw the transfer of Zenith’s own credit portfolio within a partly paid securitization of up to 50 million euros.
The transferred portfolio is represented by credits deriving from commercial invoices issued by Zenith itself as part of its business. In parallel, the company implemented this experimental deal in blockchain. The application’s infrastructure was installed on a primary cloud platform, using some specific features including the use of QLDB databases and the frontend in Cloudfront. Finally, it was activated the synchronization on the public Blockchain.
Through smart contracts, it has been developed the the part relating to the identification and the transferred portfolio, with the connected agreements, in addition to the part relating to the issuance of Tokens (which will replicate the issuance of ABS Securities expected soon), and the priority of payments, pre and post enforcement. The deposit of tokens in so-called “wallets” and their transferability to third parties was therefore envisaged.
During the technological developments, Zenith was supported by the Technology team of the parent company Arrow Global, a team made up of John Pellew, Jost Faganel and Erik Timmers with many years of experience on this topic at an international level.The team also includes the legal assistance of lawyers Simone Lucatello, Ugo Malvagna and Marcello Rivoir of Simmons & Simmons, who supported Zenith in drafting the documentation and in the correct interpretation and implementation of the technological aspects defined at a European level.
Umberto Rasori, CEO of Zenith, comments: “We are enormously satisfied with the completion of this first sale, which represents a milestone for the company from which to start on a potentially “disruptive” technological development path for the securitization sector in Italy. Our corporate culture and vision cannot ignore the continuous search for innovation and digital transformation. The blockchain now tested as a “proof of concept” represents a concept of complete mirroring of traditional transactions, and from its success we will open new horizons of business and technological adaptation to what is preparing to be a new industrial revolution”.