Asset-backed Securitization (Abs) & Supply Chain Finance Platform Using Blockchain
Client Requirement:
- The client faced challenges in tracking complex funding flows between developers, contractors, and financial institutions, as well as ensuring transparency in securitized mortgage and receivables transactions.
Our Engagement
- Review feasibility of Integrating supply chain receivables into a single, traceable digital ecosystem.
- Tokenize loan and receivable assets to support periodic securitization and issuance of ABS notes to investors
- Use smart contracts to provide early warning triggers to end investors for payment delays resulting in delinquencies and defaults
- Also to reduce manual verification, double financing, and data manipulation across lending, repayment, and tax processes
Our Deliverables
- Target Operating Model consisting of end to end issuer to investor data flows , factoring, and supply chain financing ensuring lifecycle from sale of financing portfolio, to repackaging of notes, waterfall formation, sale to investors and tracking of interests, paydowns to coupons
- Worked with developers to design smart contract protocols designed to trigger early warning signs of defaults along with invoice validation etc.
- Worked with developers to deliver a tokenization proof of concept that converts short term supply chain financing loans into and blockchain-registered ABS digital instruments