As a leading Fintech working with emerging technology, we frequently get questions from clients and market participants about working with Blockchain. Please reach out anytime with questions about how we’re re-defining the structured credit ecosystem.
+ Who is Global Debt Registry (GDR)?
GDR is a financial technology company providing asset certainty solutions to the Structured Credit ecosystem. GDR has developed an ecosystem platform leveraging distributed ledger technology to reduce costs and bring new efficiencies to the marketplace.
+ What is a Distributed Ledger and why does GDR refer to its solution as a platform?
Distributed ledger is a technology which securely stores data and creates immutable transaction records. This data is stored across multiple nodes in a distributed network, where each node is run by a plurality of network participants.
On top of this platform are smart contracts and protocols which define the way participants interact with both each other and with the data. Participants define the functions performed by these smart contracts via protocols.
+ What is GDR’s role?
GDR developed and continues to develop the platform. GDR acts as the administrator of the platform and provides services on this platform to the ecosystem. GDR will also provide governance of the platform and define the policies and standard practices for users of the platform.
Note that GDR does not participate in the structured finance ecosystem as an originator, lender, investor, rating agency, etc.
+ What about protecting confidential information?
There are two types of confidential information that need to be protected on this platform. There is confidential consumer information, and there is transaction activity records.
Confidential Consumer Information: This data is segregated between Personal Identifiable Information (PII) (i.e., the borrower's identity, social security numbers, and account numbers) and other account and consumer information. PII is not stored on the blockchain. Only authorized participants have access to non-PII confidential consumer information consistent with the rules of the platform. This non-PII confidential consumer information is stored as part of the asset on the blockchain.
Confidential Transaction Information: The data that makes up each transaction record is securely encrypted. Though this data may be stored on nodes, only those parties to the transaction or parties appropriately authorized by the transaction participant(s) are authorized to access transaction information, consistent with the rules established by the ecosystem.
GDR is annually audited using both SOC 1 and SOC 2. GDR’s key partners in the platform – AWS and IBM – also are audited annually using SOC 1 and SOC 2. The ecosystem itself will need to establish like or similar requirements for those participants who are writing smart contracts or hosting their own nodes.
+ How much does it cost?
The cost is driven by the volume of accounts, transaction volume, and range of services used by the participant. Overall costs involved in securitizing loans including use of the platform should result in significant cost reductions over time. Contact our team for more details.
+ Where is your data sourced from?
We register data provided directly from originators, lenders, warehouses, verification agents, and other market participants, and register it on our immutable, auditable, and highly secure distributed ledger. This ensures data has a proven chain of custody as it is handed off between parties within the ecosystem. The data provided is exactly what is recorded on the ledger.
+ How secure is my data?
GDR has extensive banking and consumer lending experience, managing sensitive personally identifiable information (PII) at all points in the loan lifecycle. GDR has been safely managing PII more than 10 years and meets the highest standards of independent certification, including SOC1/SOC2 and ISO 27002.
+ What blockchain platform does GDR use and why?
GDR’s blockchain platform is hosted in the IBM Blockchain Framework, which is driven by Hyperledger Fabric 1.1. GDR evaluated several of the leading blockchain technologies to determine the best fit for a structured finance ecosystem solution. Hyperledger Fabric has demonstrated performance (of over 3,500 transactions per second), is the centerpiece of the IBM Blockchain Framework, and comes with an integrated toolset for the development and administration of a secure and robust blockchain solution.
+ Do I need a relationship with IBM to access the blockchain directly?
A relationship with IBM is not required to participate. However, a decision has not been made as to whether the platform will allow for off network nodes (nodes hosted outside of the IBM Blockchain Framework) or, if allowed, when off network nodes can be used.
+ What data is stored on the platform?
GDR stores on the blockchain the information required to complete transactions and provide confidence in the integrity of assets thus registered. GDR does not store any Personally Identifiable Information (PII) on the blockchain. This information is currently stored off chain.
+ Do I need to host a blockchain node to work with GDR?
Participants are not required to host a node. Work continues on establishing requirements for hosting a node (on or off change, common policies, practices and protocols for nodes, security requirements, coding standards, etc).
It is anticipated that there will be multiple options for participants: hosting a node or not hosting a node; and if hosting a node, whether the node is administered by GDR, by you as a participant; and the decision on where to host the node.
+ Who will administer access to the blockchain?
GDR, working on behalf of the ecosystem, will administer access to the blockchain per ecosystem policies and protocols. GDR will use the appropriate access control, restrictions, and security tools found in Hyperledger Fabric.
+ Does GDR require a specific data format or technical integration?
Currently, clients can begin using the platform through the GDR web portal or by submitting files via SFTP. Either method can be used and neither requires data manipulations for formatting due to defined standards. At a future date, GDR will be releasing a protocol for direct access to the platform.