We are excited to announce today that we have joined our colleagues from CoinIX, Bankhaus Frick, and a group of business angels for the Seed Round of Cadeia, a digital platform for efficient structuring, issuing, and settlement of complex financial products.
Authors: Benjamin Horvath and Wolfgang Männel
Cadeia (Portuguese for “Chain” like in “Blockchain”) is a DLT-powered platform to automate the full lifecycle of asset securitization in investment banks.
What we learned when looking at this process in more detail is, that in contrast to the sophisticated tools that investment bankers have developed to gain an edge in analytical insight in investing, the processes and workflows for the fulfillment of the securitisation are remarkably manual and unsophisticated.
This lack of digitalisation and automation increasingly creates headaches in cost, risk, and compliance management.
As the pressure on margins tightens, banks need to act. A lack of transparency of the contents of a securitised asset packed creates risks that need to be understood, quantified, and managed. And internal and external audits require a trail that can be followed and verified.
One would think that IT systems that fully support and automate the securitisation life-cycle exist but that is just not the case.
Fulfillment processes are often handled with isolated Excel sheets resulting in frequent mistakes that in turn create more workload.
As an example, a loan portfolio review can take weeks today. Cadeia can cut this down to a few days or even hours.
Based on studies by Capgemini, Deloitte, and EY the team analysed the value chain segments of the traditional securitization process and estimated the potential savings which turned out to be between 100 and 350 basis points.
Given the tight margins in today’s markets, this would translate into millions of Euros in administrative work that could be saved with the Cadeia software.
But it doesn’t stop here.
The possibilities of Cadeia go much further than the massive cost savings in the fulfillment process. Provided that the feedback is as positive as expected, Cadeia could move into Loan Syndication and many other use cases which share the same fulfillment cost problems.
The founding team has outstanding domain knowledge in investment banking having worked in this industry for many years.
The team behind Cadeia is led by Patrick Hartl, who worked in securitization and M&A and has first-hand experience of both the front and back office.
Joining him as Managing Director is Rolf Steffens, a veteran in international investment banking, where he spent over 30 years working in structured finance for Deutsche Bank, HSBC, and Merrill Lynch.
Marco Schmitz, former Head of Blockchain Compliance at Bank Frick, holds a Ph.D. in Computer Science and joined Cadeia to drive the technical development of Cadeia’s platform.
Leonhard Fehr, who worked for Unicredit/HVB for almost three decades in various positions around the globe, most recently as Global Head of Institutional Clients, now takes care of Cadeia’s clients.
Constantin Ketz, Vice Chairman and co-initiator of the International Token Standardization Association (ITSA) with deep market knowledge, will focus on business development and ecosystem partnerships.
And last but not least, Ferdinand von Kirch, another investment banking veteran, this time with a legal background, covers everything finance and legal at Cadeia.
We were most impressed by the drive and know-how that this team brings to the table and we are keen to support the Cadeia team on their, no doubt successful, journey.
Cadeia is a financial technology company with the vision to make global capital market transactions and financial products more secure and efficient for both, issuers and investors. Based on novel distributed ledger technologies, Cadeia develops and operates an innovative platform for the digital structuring, issuance, and settlement of complex financial products (e.g. asset-backed securities or syndicated loans) as well as the automated and rule-based management of the related cash flows. The offering is aimed at banks, asset managers, insurance companies, and pension funds, among others.
If you are looking for a digital process automation and cash-flow distribution solution, book a quick demo with Cadeia by reaching out directly to them.
Contact: Constantin Ketz, Co-Founder, email@example.com
Blockrocket is an accelerator and investor in early-stage blockchain startups. We are based in Germany but invest in equity deals globally — with ticket sizes ranging from € 100–500k. Together with our venture capital partner, the BFG Blockchain Founders Group AG, we specialize in pre-product-market fit business models in the blockchain space.
Want to find out more about our program? Then please visit our website or reach out directly to us.
Contact: Benjamin Horvath, Managing Director, firstname.lastname@example.org
BFG Blockchain Founders Group is a company builder and early-stage venture capital investor. Our team comprises academic and regulatory drivers of the blockchain economy, serial entrepreneurs, and venture capitalists. We love to work with outstanding entrepreneurial talents and bring to bear the full support of our network to make them succeed.
Visit our website or reach out directly to us.
Contact: Wolfgang Männel, Senior Partner, email@example.com