The private debt market has been crafted by bankers and lawyers using existing legal and technological frameworks, which have proven to be limited, adversarial and exclusionary. This has resulted in a market with high barriers to entry, accessible only to those with substantial financial resources, extensive networks, and sophisticated legal teams. Liquidity acts as a utility for this market, dismantling these barriers, thereby benefiting all participants. We empower banks, institutions, borrowers, and investors to enhance returns by increasing direct participation and reducing market entry and exit restrictions.

Leveraging Liquidity’s digital approach, utilising the Hedera blockchain and built on the InterSystems IRIS platform, banks and institutions can originate new loans as sponsors without the need to fully fund them. They can also sell existing loans partially or entirely, including performing and non-performing assets, with Liquidity handling the securitisation, tokenisation, and distribution processes. Our approach ensures optimal pricing by aggregating the best offers from those who value the opportunities the most, rather than those with the deepest pockets. This significantly enhances balance sheet management, transforming long-term exposure into cash positions through the ‘retailisation’ of debt.

Banks and intermediaries can structure innovative opportunities to serve both existing and new clients, including arbitrage trading and securing higher yields while accommodating capital of all durations. The ability to transfer debt in whole or in part within a regulated market is supported by independent credit ratings and the management of the underlying tokenised securities.