In 2008, the world faced a financial meltdown led by the US housing crisis. At the time, the financial industry and several companies had to be bailed out by the US government. The meltdown began due to securitisation of loans. These bad loans were packaged and traded by hedge funds, whose value was linked to the ability of homeowners to pay back their loans.
“When this packaging and repackaging of loans happened, there were one-on-one contracts between financial institutions such as banks and securitisation companies, there was no way one could tell that the value of the security was falling. This is where smart contracts play a major role – in keeping transparency in the financial system,” says Siddhartha S, Founder of Intain.
Beginning his career at the confluence of technology and the financial industry in 2001, Siddhartha started out in a joint venture between Deutsche Bank and HCL. He then moved on to HCL for a decade where he headed global delivery for financial services.
During his time there, he was fascinated with emerging technologies like artificial intelligence (AI) and Blockchain. Siddhartha realised if he can combine the efficiency of artificial intelligence (AI) to crunch data with the transparency of Blockchain to manage different actors in a transaction, he would have a powerful idea in the financial industry.
As chance would have it, he met a bunch of investors in the financial industry who backed the idea on paper. Although Siddhartha doesn’t disclose the actual amount, he admits that it was a sizeable one.
In January 2018, he quit his well-paying job and began building Intain out of Chennai.
Watch Siddhartha in conversation with YourStory here:
Intain is built on the open-source Hyperledger fabric and records all securitised contracts. It puts banks and securitisation companies on the same platform. The company took a good one year to ready its technology and currently has a 40-member team.
“Think about us as building an ERP for…