Blockchain Enabled Collateral Management Solution

Blockchain Enabled Collateral Management Solution

Enable Transparency, Efficiency on Collateral Reconciliation

AT A GLANCE

We have developed a Collateral Management solution on Ethereum Blockchain

Ethereum based
Smart Contracts
$40 Billion
Total Assets
8
types of Collaterals

About Client:

The Client is a financial services company and is one of the oldest national banks in USA. The Bank provides financial services through more than 180 locations in USA.

Problem Statement:

  • The Bank wanted to track Secure Loan – Savings Account as collateral pledge tracking using Blockchain
  • They wanted any collateral booked on their collateral system should be available as an externally consumable Webservice
  • The objective is to track each collateral as a digital asset since the origination, trail of records and should act as a single source of truth of collateral on blockchain network.
    For an update on the collateral like pre-payment of the loan amount, an event triggered from the collateral system and the smart contract would capture the event and log the transaction on ethereum blockchain. This would help manage any constraints on the collateral on the blockchain network to maintain 100% transparency with the customers

    Our Solution:

    DreamzTech has developed a blockchain solution for a leading bank in the USA to help them in tracking collaterals (such as Loan, CDs, Credit and debit status etc) on Ethereum Blockchain. Each collateral would be tracked as a digital asset to track the origination, trail of records and act as a single source of truth of collateral on the blockchain network. Any update on the collateral like pre-payment of the loan amount, an event will be triggered by the collateral system and the smart contract would capture the event and log the transaction on Ethereum blockchain. This would help manage any constraints on the collateral on the blockchain network to maintain 100% transparency with the customers.

    DreamzChain developed Solidity smart contracts to interface with bank collateral system, Smart contract handle events and oracles to query external services Ethereum solidity smart contracts fetch the collateral information from the Webservice using Oracles. The contract was developed keeping in mind optimization for minimum gas consumption web3.js & other JavaScript frameworks used to interface with solidity contracts and develop the UI Ropsten test net along with Metamask used for testing the smart contracts. The overall solution would be tracing the end-to-end lifecycle of collateral Created a mechanism to secure transaction for Hardware Wallet Email notification to the Loan Representative and Customer once the loan Balance reaches zero

    Benefits

    • Single source of Truth of collaterals
    • Bank is able to trace end-to-end lifecycle of Collateral
    • Real-time collateral reconciliation
    • Transparency and visibility to the customer of the outstanding loan balance
    • Immutable ledger of all loan transactions pertaining to savings and CD accounts
    • Real-time alert and notification when loan fully repaid
    • Synchronization and reconciliation between the blockchain network and banking internal systems
    • Increase efficiencies in banking processes
    • Improved customer satisfaction

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