Institutional Credit Risk Management On Chain
Bring responsible lending solutions to the blockchain to drive capital market efficiencies, reduce counterparty risks, and improve financial market transparency
For a successful technology, reality must take precedence over public relations, for Nature cannot be fooled.
Richard P. Feynman
Business is increasingly global and stablecoins facilitate money movement at internet speeds and at a fraction of the explicit and hidden costs of traditional money transmission. Bank-limiting settlement times add additional costs and frictions along the journey of every capital raise and business transaction.
By leveraging blockchain infrastructure, our experienced credit team can operationally scale at a fraction of the cost/income ratio of banks and large-scale asset managers.
Moreover, the radical transparency of DeFi protocols, joined with the composability of DeFi applications, make for superior infrastructure when compared to the opaque banking system with spaghetti infrastructure locked behind firewalls and limited by national banking, settlement, and payment infrastructure.
Debt underwriting and syndication across the $15tr+ corporate bond and syndicated loan market is exceedingly inefficient, enabling only the largest companies to access liquid capital markets.
Historically, banks accounted for the vast majority of middle-market credit formation. Post-GFC capital controls (Dodd Frank and Basel III) and corresponding bank consolidation, has resulted in declines in the access of traditional credit formation and the rapid expansion of alternative/private lending.
Meanwhile, technology is disintermediating traditional bank deposits from multiple angles.
Direct lending assets under management has grown from a cottage industry before the global financial crisis to >$1.5tr in global assets under management, per Preqin, with the number of publicly traded Business Development Companies (BDCs) doubling over the past decade.
Finally, legacy banks and market participants are poorly positioned to support yield aggregation strategies as fintechs, neo-banks, software-first businesses, corporate treasuries, DAOs, and anyone with a Web 3 wallet source sustainable, globally scalable, risk-managed yield strategies.