Please consider Blockchain Eyed for Mortgage Bundling That Caused 2008 Crisis.

A group of big financial institutions wants to use the blockchain to help resurrect the packaging of home mortgages into securities, a business that almost destroyed the global banking system in 2008.

Credit Suisse Group AG, U.S. Bancorp, Wells Fargo & Co. and Western Asset Management Co. said Thursday that they successfully tested the distributed ledger technology as a way to make it easier to track securitized home loans.

“Structuring securities is complex, involving many different parties, manual processes, duplicated documents and data in different formats,” David Rutter, chief executive officer of blockchain startup R3, which is organizing the consortium, said in a statement Thursday. While the group is starting with residential mortgages that aren’t backed by the U.S. government, it plans to expand to other types of asset-backed securities. The next step is delivering a commercially viable product, R3 said.

“Distributed ledger technology will increasingly improve security around data, not just for capital markets but across numerous other industries,” Penny Morgan, global securities operations manager at Western Asset Management, said in the statement.

BINGO

Low-volume, high-worth transactions are perfect for blockchain. I proposed Title Insurance applications years ago. The entire Title Insurance industry and car title industry could easily be replaced by blockchain at a huge cost saving.

I expect both to happen.

Arguably Bad Uses

Bitcoin Top In?

Amusing Video

Tatoo This

"Stop saying the blockchain is the underlying technology behind Bitcoin. It's the other way around."

How people can make such clearly false statements with a straight face is beyond me.

Blockchain has many legitimate uses. Bitcoin has a use in money laundering and speculation.

Even if you believe Bitcoin has more uses, fundamentally, Bitcoin depends on blockchain. Blockchain does not depend on Bitcoin.

Mike "Mish" Shedlock

Walmart to Use Blockchain to Track Lettuce

Walmart will require lettuce and spinach suppliers to contribute to a blockchain database to pinpoint contamination.

Where is Blockchain Really Used? Nowhere! Study Shows 0% Success Rate

Other than cryptocurrencies, where is blockchain used? A study cannot find anyplace, only tests, proof of concept, etc.

Beyond Bitcoin and ICOs: The Future of Blockchain

Bitcoin may or may not be in the future, but Blockchain surely will be. The next applications will be more legitimate.

Australia Stock Exchange Adopts Blockchain

The Australian Securities Exchange (ASX) will replace its current clearing system with blockchain technology.

Blockchain and Gold Like Peanut Butter and Chocolate?

Even before the emergence of Bitcoin and the growing plethora of cryptocurrencies, several attempts had been made in the past to create digital currencies based on gold, but none of them gained widespread support. Will blockchain and Bitcoin succeed where other attempts failed?

First US Real Estate Transaction in Blockchain: What's Next?

Vermont is headed towards blockchain recording of real estate transactions. Other states will follow.

Tweets of the Day: Volatility, Mortgage Delinquencies, Iran, Debt

Here are some tweets, from people I follow, worth discussion consideration. Topics vary widely.

Zombification Perfected: Negative Yield Junk Bonds Take Hold in Europe

Expectations of further monetary stimulus depress yields. There are now 14 junk bonds in Europe with a negative yield.

Beyond the Fed: Exploring the Use of Forward Rates As a Recession Indicator

The SF Fed proposed using forwards rate spreads as a means of predicting recessions. I suggest the idea is flawed.