Uncovering the value of blockchain applications in the world of finance

• Main Author: CHENG, Qiang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Blockchain; finance; asset-backed securities; Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/2033; https://ink.library.smu.edu.sg/context/soa_research/article/3060/viewcontent/ValueBlockchain_Finance_WFR_av.pdf
• Institution: Singapore Management University

This article discusses the benefits of using blockchain in the context of asset-backed security (ABS) issuance: reducing information asymmetry between issuers and investors, reducing yield spread of ABS, disciplining credit rating agencies, increasing the quality of underlying assets, and reducing issuers’ risk exposure. Such benefits should apply to other blockchain applications in the world of finance.