Implementing Smart Contracts in the Syndicated Loan Market: An Issue of Adoption

Abstract

Distributed ledger technology allows for data to be recorded, shared, and synchronized across multiple distributed data stores. This brought forth the idea of using this technology to build consensus. Implementing this technology within the Syndicated Loan Market through Smart Contracts allows for reduced manual labor and back-office workloads as well as the removal of reconciliation and corporate actions. As a result, counterparty risk and settlement times will be minimized, and performance and transparency for regular reporting will increase. However, an individual's embrace of this new technology will determine its successful implementation. To address this issue, this article examines the trust model, trust in technology drivers, and the revised unified theory of acceptance and use of the technology model to construct the trust and adoption of the technology model. This article culminates in guidelines for the implementation of Smart Contracts. Avenues for future work include the investigation of a multimotive information systems acceptance model.