WizKey, established in 2018 by an experienced team of structured finance operations, is a decentralized infrastructure that uses the blockchain for credit tokenization.
The blockchain plays a central role as a technological solution that can reduce the costs and timeframes of traditional financial processes due to its transparency, security and lack of intermediaries.
In fact, there are countless cases of use and experiments already underway, including for example the “Spunta” project by Abi Lab.
How to transform illiquid assets into tokens
WizKey allows actors such as banks and companies to value illiquid assets such as credits by turning them into tokens based on the Ethereum blockchain, which guarantees transparency and security.
Thanks to this process, tokens can be traded on the market and then monetized, offering a significant advantage for investors.
This is why Wizkey has launched the Define platform for the impaired credit market, so-called NPLs (non-performing loans).
The CEO of Wizkey, Marco Pagani, said:
“This is a very interesting market, where manual search operations take a long time and are often a problem when managing portfolios. This is where blockchain technology can bring interesting benefits in terms of operational and economic efficiency. Which is why the focus was placed on creating a simple and highly intuitive dynamic platform that saves a lot of time and money”.
NPL: a growing market in 2021
According to a study by Bain & Co, there will be an exponential growth in non-performing loans next year.
Banks will become weaker as they did during the 2008 crisis and there will be an increasing need for tools to help them manage their investments.
Define is a tool that could do this, allowing access to the credit market, cutting costs and maximizing the value of portfolios.
Define was launched in 2019 and some banks have already tested the platform, as explained by its CEO:
“WizKey is already operational on the market and in order to help banks and operators, during this particular unprecedented moment, we have decided to allow free use of our platform for testing until the end of the year. We are delighted to be able to support those choosing us in this path of innovation, which is as necessary as it is indispensable in order to face 2021 and the years to come in the best possible way”.
What WizKey does:
- Certified digitization of credit documents;
- Platform installation;
- Document uploading to the platform;
- Document notarization and credit tokenization (ERC721);
- Invitation of the purchasing party;
- Negotiation on the platform (with exchange of transfer contracts);
- Upon payment, transfer of the entire document set + credit token in favour of the acquiring party.