WO2020058993A1

WO2020058993A1 - A block-chain based smart securitization platform

Info

Publication number: WO2020058993A1
Application number: PCT/IN2019/050693
Authority: WO
Inventors: Sanjay Kumar NISHANK; Anil SRIKANTIAH
Original assignee: Intain Technologies Private Limited
Priority date: 2018-09-23
Filing date: 2019-09-23
Publication date: 2020-03-26

Abstract

A blockchain based smart securitization method comprising: by a blockchain-enabled securitization database, hosting first content items (securities); by a blockchain-enabled securitization processor; pooling selected first content items to form a second content item (securitization pool); determining third content items (tranches) by breaking second content item into tranches; defining and executing a smart contract, with third content items, with pre-defined rules and trigger points; by a blockchain-enabled network processor; determining an ORIGINATOR NODE, with first content item and second content item; hashing second content item and serving via an ISSUER NODE; allowing, through a SERVICER NODE, an ISSUER of said ISSUER NODE to pre-define rules and triggers of smart contract to allow an INVESTOR to engage with third content items; allowing, through an INVESTOR NODE, an INVESTOR to engage third content items correlating with triggers and rules to achieve ownership of third content items in an immutable rule-based, trigger-based, transactional engagement.

Description

A BLOCK-CHAIN BASED SMART SECURITIZATION PLATFORM

FIELD OF THE INVENTION:

This invention relates to the field of distributed ledger based networking systems.

Specifically, this invention relates to a block-chain based smart securitization platform.

BACKGROUND OF THE INVENTION:

Securitization is a process in which certain types of assets are pooled together so that they can be repackaged into certain interest-bearing securities.

Much inefficiencies persist throughout the securitization lifecycle, adding to time lags, costs, and opacity. In all asset classes, basic loan underwriting data is rarely standardized and sometimes not centralized even within the originating institution. The information asymmetry reduces market efficiency. The primary reason for the 2008 subprime mortgage financial crisis are debt and mortgage backed assets.

FIGURE 1 illustrates a schematic work flow of a securitization platform of the prior art.

The traditional securitization involves the following steps.

1. The originator (ASSET ORIGINATOR), usually a bank (or banks), determine the list of assets to be securitized.

2. In the next stage, the originator has to find out a SPECIAL PURPOSE VEHICLE (SPV) or new SPV is formed. SPVs are created by the financial institutions to isolate the firm from any financial risk. It is protected even if the parent company goes bankrupt and vice versa. They are allowed only to buy, sell and finance assets.

3. The INVESTORS buy securities (like shares) from SPV which is a small portion of the total loan pool.

4. The Originator is usually appointed as a Servicer for the transaction

5. The Servicer collects the receivables and pays off the collection from debtors to the SPV.

6. The SPV either passes the collection directly to the investors or it reinvests collection to pay off to investors at certain intervals.

7. In case of loan default by debtors, the servicer takes action against them as SPV’s agent.

OBJECTS OF THE INVENTION:

An object of the invention is to provide a blockchain enabled securitization platform.

Another object of the invention is to provide a blockchain enabled securitization platform which provides smart contracts.

Yet another object of the invention is to provide a blockchain enabled securitization platform which decreases costs, improves speed, and eliminates inconsistencies and errors.

Still another object of the invention is to provide a blockchain enabled securitization platform which provides data transparency and authenticity to the network.

An additional object of the invention is to provide a blockchain enabled securitization platform which provides the process of securitization with fast feedback and reduced latency.

SUMMARY OF THE INVENTION:

According to this invention, there is provided a blockchain based smart securitization method comprising the steps of:

by a blockchain-enabled securitization database;

hosting a plurality of first content items (securities);

by a blockchain-enabled securitization processor;

identifying a first content item (securities), from said blockchain- enabled securitization database;

defining a tag per first content item;

linking said defined tag(s) with said associated first content item(s);

pooling a plurality of selected first content items, said selection being based on pre-defined selection criteria, to form a second content item (securitization pool);

determining a plurality of third content items (tranches), corresponding to said second content item, by breaking said second content item into tranches based on pre-defined rules;

defining a smart contract, corresponding with said third content items, with pre-defined rules and pre-defined trigger points, as defined by an artificial intelligence based rule engine;

executing said smart contract, corresponding with said third content items, with pre-defined rules and pre-defined trigger points, as defined by an artificial intelligence based rule engine;

by a blockchain-enabled network processor;

determining an ORIGINATOR NODE, in said blockchain-enabled network, with said first content item and said second content item; hashing said second content item and serving said content item via an ISSUER NODE in said blockchain-enabled network;

allowing, through a SERVICER NODE, on said blockchain- enabled network, an ISSUER of said ISSUER NODE to pre-define rules and triggers of said smart contract to allow an INVESTOR to engage with said third content items in correlation with said triggers and said rules;

allowing, through an INVESTOR NODE, on said blockchain- enabled network, an INVESTOR to engage said third content items in correlation with said triggers and said rules to achieve ownership of said third content items in an immutable rule -based, trigger-based, transactional engagement with said third content items.

According to this invention, there is also provided a block-chain based smart securitization platform comprising:

a blockchain-enabled securitization database configured to host a plurality of first content items (securities);

a blockchain-enabled securitization processor comprising:

- a tag definition mechanism configured to defined a tag per first content item [security] per securitized asset per customer, a plurality of first content items [securities] forming a second content item [securitization portfolio], said tag being a blockchain enabled tag;

- a linking mechanism configured to link each defined tag, immutably, to a first content item [security], said linking mechanism being a blockchain enabled linking processor;

- a reviewing node configured to allow a reviewer to review integrity of said first content item [security] by means of ratings computed by said platform;

- a rule engine configured for auto-execution of a smart-contract in case of pre- defined trigger events; - a scanning module configured to scan documents pertaining to said first content item [security], said scanning module being communicably coupled to a Loan Management System in order to fetch data from said customer’s LMS to an intermediate database before conversion of second content item (securitisation) from a pool of said selected first content items [security];

- an AI engine configured to identify document type and extract pre- determined information pertaining to at least a first content item [security]; a blockchain-enabled network processor configured to determine a block- chain enabled network comprising an ORGINATOR NODE on said network, an ISSUER NODE on said network, a SERVICER NODE on said network, and an INVESTOR NODE on said network, characterised in that:

- said ORGINATOR NODE, on said blockchain-enabled network, configured to read and edit extracted data from said AI engine;

- said ISSUER NODE, on said blockchain-enabled network, configured to receive assigned second content item [securitization portfolio] from said ORIGINATOR NODE, said first content item of said received assigned second content item being hashed and stored per first content item, and further configured to be provided with a Graphical User Interface to provide a unified view of all second content item [securitization portfolio] associated with said issuer;

- said SERVICER NODE, on said blockchain-enabled network, configured such that an ISSUER can upload a SERVICER document per pool, thereby authorizing a SERVICER so that said SERVICER can look at said first content items [securities (S)] and said second content item [securitization portfolio (SP)], said SERVICER being configured to approve a services assignment process, said SERVICER being provided with a provided with a Graphical User Interface to view all the services associated said Services’s corresponding second content item [securitization portfolio];

- an aggregation engine configured to provide an Aggregate Rating of second content item [securitization portfolio], in order to determines if a customer, associated with a first content items [securities], is risky and to associate a computed risk with second content item [securitization portfolio] to provide an Aggregate Rating of the pool of securities; and

- an INVESTOR NODE, on said blockchain-enabled network, configured to allow investors to enter into a transactional engagement (invest) into pre- defined trenches (third content items) of second content item [securitization portfolio, vide said triggers.

In embodiments, said platform comprises a tag database configured to store a plurality of such tags is stored in a tag database.

In embodiments, said platform comprises criteria applying node configured to apply at least an eligibility criterion to said pool of securities to create said second content items [securitization portfolio (SP)].

In embodiments, said platform comprising a comparator configured to compare data from said originator node with data from said customer’s Loan Management System (LMS) to check for discrepancies in data.

In embodiments, said platform comprises a selector node configured to allow an originator, through said originator node, to select said first content items’ records and to assign it to said second content items to be brought on to said blockchain-enabled network to form a blockchain enabled pool of securities.

In embodiments, said platform comprises an issuer node configured to allow an issuer, through said issuer node, to approve said first content items assigned to said second content item (pool). In embodiments, said platform comprises an issuer node configured to allow an issuer, through said issuer node, to divide said second content items (pool of securities) into different third content items (trenches) based on parameters for slicing said pool.

In embodiments, said rule engine is configured to provide a private blockchain network in order to control / restrict access to an administrator-specific blockchain network.

In embodiments, said rule engine is configured to provide trigger events for auto-execution of contracts.

In embodiments, said rule engine is configured with rules defined in accordance with pre-defined regulatory framework compliance modules in order to check for compliances, in order to generate alerts in relation to matching or unmatching of pre-defined compliances.

In embodiments, said rule engine comprises a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an‘early amortisation trigger’ being configured to be triggered in the event of cumulative default figures, obtained from periodic collections, exceeding pre-defined threshold percentages.

In embodiments, said rule engine comprises a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an‘stop replenishment trigger’ being configured to be triggered such that a credit enhancement account or an excess interest account is not replenished from cashflow received; rather, said cashflow received is channeled towards interest and principal amounts of senior and subordinate tranches.

In embodiments, said rule engine comprises a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an ‘acceleration trigger’ being configured to be triggered such that changes to priority of payments are made in a manner that principal redemption of senior notes rank higher than interest payments to subordinated notes (acceleration triggers) and pro rata principal payment is changed to sequential payment (acceleration triggers).

In embodiments, said rule engine comprises a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an‘interest deferral trigger’ being configured to be triggered such that interest on junior notes are deferred to allow for a faster redemption of senior notes.

In embodiments, the blockchain-enabled securitization database, the blockchain-enabled securitization processor, and the blockchain-enabled network processor is determined by a trust computer system using a decentralized electronic ledger.

In embodiments, the step of linking said defined tag(s) with said associated first content item(s) - is performed by a trust computer system using a decentralized electronic ledger.

In embodiments, the step of pooling a plurality of selected first content items, said selection being based on pre-defined selection criteria, to form a second content item (securitization pool) - is performed by a trust computer system using a decentralized electronic ledger. In embodiments, the step of executing said smart contract, corresponding with said third content items, with pre-defined rules and pre-defined trigger points, as defined by an artificial intelligence based rule engine - is performed by a trust computer system using a decentralized electronic ledger.

In embodiments, the step of hashing said second content item and serving said content item via an ISSUER NODE in said blockchain-enabled network - is performed by a trust computer system using a decentralized electronic ledger.

In embodiments, the step of allowing, through a SERVICER NODE, on said blockchain-enabled network, an ISSUER of said ISSUER NODE to pre-define rules and triggers of said smart contract to allow an INVESTOR to engage with said third content items in correlation with said triggers and said rules - is performed by a trust computer system using a decentralized electronic ledger.

In embodiments, the step of allowing, through an INVESTOR NODE, on said blockchain-enabled network, an INVESTOR to engage said third content items in correlation with said triggers and said rules to achieve ownership of said third content items in an immutable rule-based, trigger-based, transactional engagement with said third content items - is performed by a trust computer system using a decentralized electronic ledger.

BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWINGS:

The invention will now be described in relation to the accompanying drawings, in which:

FIGURE 2 illustrates a schematic block diagram of the block-chain based smart securitization platform;

FIGURE 3 illustrates a flowchart for providing an assignor-assignee contract using the system and method of this invention; and

FIGURE 4 illustrates an architectural framework using the system and method of this invention. Various ‘SMART CONTRACT’S (301) can be enabled using the system and method of this invention (200). These can be invoked by various web or mobile applications (302) provisioned to access this platform and network.

DETAILED DESCRIPTION OF THE ACCOMPANYING DRAWINGS:

According to this invention, there is provided a block-chain based smart securitization platform.

FIGURE 2 illustrates a schematic block diagram of the block-chain based smart securitization platform.

For the purposes of this invention, a‘security’ is a first content item which is a tradable financial asset. Typically, a security comprises data items pertaining to assets such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations, or the like.

For the purposes of this invention, a‘securitized asset’ is a group of such first content items i.e. securities (financial assets) pools together. Typically, a securitized asset comprises data items pertaining to securities.

For the purposes of this invention, a‘tag’ is defined as a token which is a representation of a particular asset or a utility on a blockchain. Typically, a tag comprises data items which can be meta-deta or a pointer pertaining to the securities of a securitized asset. Typically, the tag can be used to be associated with its corresponding security as well as its corresponding securitized asset.

In at least an embodiment, a tag definition mechanism (TDM) is configured to defined a tag per security (S) per securitized asset. A plurality of such tags is stored in a tag database. A plurality of first content items i.e. securities (S) form a securitization portfolio (SP) which is a second content item.

In at least an embodiment, a linking mechanism (LM) is configured to link each defined tag, immutably, to a security i.e. the first content item. This linking prevents the security or its components from being allocated to another security. This makes double-pledging of the security (collateral) nearly impossible. This linking mechanism is a blockchain enabled linking mechanism such that each securitized asset may have one governing model or one version of the truth enabled by blockchain mechanism. This linking mechanism, in at least an embodiment, uses a hashed value of an identity of the tag - which hashed value is stored and updated in the blockchain network.

In at least an embodiment, a reviewing node (RN) is configured to allow a reviewer to review integrity of a security or a securitized asset that has been blockchain tagged, by this invention, to provide a preliminary assessment of securitization transactions. Smart contracts for standard derivative contracts ensures ease of executing derivative contracts and are backed by complete transparency as a derivative trader also has same view of the securitized asset, chain code templates for custom contracts. The reviewer node is configured to provide real time rating of a securization portfolio. A common view of the portfolio is provided and is used for auto-execution of smart- contract in case of trigger events as defined by a rule engine (RE).

In at least an embodiment, a scanning module (SM) is configured which allows users to scan loan related documents. A customer’s Loan Management System (LMS) can be communicably coupled to this scanning module. At the scanning module, pre-processing is done in order to fetch data from the customer’s LMS to an intermediate database before securitization of the security (i.e. the loan of the customer, in this instance).

In at least an embodiment, an AI engine (AIE) is configured to identify type of document and extract only relevant information pertaining to at least a security. Typically, the customer’s contract documents are fetched from the LMS using tis AI engine. With some selection parameters, the system and method, of this invention, imports all securities from existing LMS or from excel sheet containing relevant data. Due diligence compares data from LMS with extracted data stored in a database by AI where the data read from scanned documents are present. A table is displayed to a user, displaying matched and unmatched data. The user is also given an option to reject unmatched data if it is of less importance or if he / she feels it is irrelevant. Then these securities are pooled together, transferring ownership, document management, managing pool attributes are done using our product.

Multiple securities (loans) of multiple customers are pooled.

In at least an embodiment, an ORGINATOR node is configured to read and edit extracted data from the AI engine (AIE). Typically, data such as loan type, customer details, loan amount, currency, term, collateral details, and like is extracted from the customer’s LMS system (through APIs or an exported file, etc.).

In at least an embodiment, at the ORIGINATOR node, customer details, associated with each security, are also extracted. Exemplary, non-limiting, customer details include gender, marital status, qualification, employment status, occupation, source of income, gross income, make / brand of item associated with the security, invoice price, LTV, loan amount, IRR, tenure, EMI amount, processing fees, source branch, address, city, state, pin code, country, and the like.

Multiple files of the multiple securities (loans) of multiple customers are pooled. All these securities, and files, need to brought on the blockchain platform for purposes of security and to avoid double-pledging; thereby, increasing the veracity of the pool of securities for the purposes of securitization.

The originator inserts identifiers for each pool of securities (e.g. pool of securities pertaining to home loans, pool of securities pertaining to two- wheeler vehicles, and the like).

In at least an embodiment, a criteria applying node is configured to apply at least an eligibility criterion to the pool of securities (e.g. asset category, time, term, and the like).

In at least an embodiment, a comparator is configured to compare data from originator node (where data from contract documents or security- related documents is extracted) with data from the customer’s Loan Management System (LMS) for the purposes of due diligence. In at least an embodiment, a selector node is configured to allow an Originator to select security (loan) records and to assign it to a created pool - which is then brought on to a blockchain platform. A blockchain enabled pool of securities is formed at this point in time.

In at least an embodiment, an ISSUER NODE is configured to receive assigned pool of securities from an ORIGINATOR NODE, on the blockchain platform. At this point, documents can be uploaded per pool / security. These documents are hashed and stored; attributes can be assigned to each uploaded document. An ISSUER can view all the pools (along with loans associated with the pool) assigned to him / her. The ISSUER can approve the loans assigned to the pool. ISSUER can divide the pool of securities into different trenches (can provide parameters for slicing the pool). In at least an embodiment, a hashed value of the identities of the assigned pool of securities is stored and updated on the blockchain network.

In at least an embodiment, a SERVICER NODE is configured such that an ISSUER can upload a SERVICER document per pool, thereby authorizing a SERVICER so that the SERVICER can look at the securities (loans) and the pool of securities. SERVICER can approve the services assignment process. SERVICER can view all the services associated with his / her corresponding pool of securities.

In at least an embodiment, an aggregation engine is configured to provide an Aggregate Rating of the pool of securities (e.g. loans of various customers). This aggregation engine determines if a customer, associated with a security, is risky and associates this risk with the pool of securities to provide the Aggregate Rating of the pool of securities. In at least an embodiment, the Aggregate Rating of the pool of securities is computer as follows:

A = Loan Amount/ Total Loan Amount

B = Tenor/ MAX(Tenor)

Pool Rating = LoanRating * (A+B) / Total Loans

In at least an embodiment, an INVESTOR NODE is configured to allow investors to invest into the tranches. This node allows investors to look at the loan details, collection details, and the like details. In at least an embodiment, a hashed value of the tranches of the assigned pool of securities is stored and updated on the blockchain network. Additionally, in at least an embodiment, a hashed value of the investment per tranche (assigned pool of securities) is stored and updated on the blockchain network.

In at least an embodiment, a rule engine (RE) is configured to define rules with respect to blockchain network started. Furthermore, this rule engine is configured to provide a private blockain network in order to control / restrict access to an administrator- specific blockchain network as and how defined by a corresponding administrator. The rule-engine is also configured to provide trigger events for auto-execution of contracts. The rule engine can also be configured with rules defined in accordance with pre-defined regulatory framework compliance modules in order to check for compliances, in order to generate alerts in relation to matching / unmatching of compliances, and the like parameters.

All steps / transactions i.e. movement of assets, assigning, pool assignment, investor investing; are all on blockchain.

FIGURE 3 illustrates a flowchart for providing an assignor-assignee contract using the system and method of this invention.

A loan sheet (201) is derived from a Loan Management System (LMS) (202). From an AI engine (203), loan contract data (204) is extracted. Loan sheet data (201), LMS data (202), and AI Engine data (203) is fed to the blockchain enabled securitization platform (200) of this invention. Due diligence (205) is done on the data that is imported (206) and a portfolio (207) is setup. This portfolio (securitization portfolio) is submitted on to a blockchain network (208). An assignor (250) and assignee (260) are authorised to interact through this network and platform (200). An assignor (250) setups up a securities’ portfolio and creates an assignment / transfer pool (209) after which the system enables or initiates pool assignment / transfer (210). The assignor can, then, upload or sign the security documents on the bio ckchain network in a secure manner. An assignee (260) can view (211) the securities’ portfolio and the system then initiates (212) and approves (213) assignment of transfer of the security or securities. A further step (214) of structuring the servicer is carried out after which the assignee (206) countersigns (215) and the system of this invention, then, approves (216) the documents on the blockchain network (200). FIGURE 4 illustrates an architectural framework using the system and method of this invention. Various ‘SMART CONTRACT’S (301) can be enabled using the system and method of this invention (200). These can be invoked by various web or mobile applications (302) provisioned to access this platform and network.

In at least an embodiment, the system is configured with a database comprising a plurality of cashflow waterfall models. Based on pre-defined criteria, as detailed below, a cashflow waterfall model is automatically selected, from this database, by the system and method of this invention.

Each‘smart contract’ is enabled by pre-defined triggers enabled by the rule engine (RE). Triggers, in a securitisation deal, are used to modify an operation of the deal. As part of the setup process of the system and method of this invention, ISSUERS build multiple versions of a cashflow waterfall model, in the form of smart contracts. The system, of this invention, provides configurable choices to the issuer / tmstee to build combinations of sequences of cashflow distributions. Since the system collects actual monthly cash flows for each one of the loans in a pool and saves in it on the blockchain enabled platform of this invention, the blockchain enabled platform already has information relating to default, loss, and / or delinquency levels pertaining to each of the securities. Based on monthly collection amounts received from the securities’ portfolio of the pool, cumulative loss, cumulative default, and / or delinquencies are calculated on a monthly basis. Once they go beyond the threshold levels as defined in a smart contract, early amortisation or stop replenishment triggers get kicked in. In other words, once these cumulative figures go beyond pre- defined threshold percentages, the platform automatically picks up a different cashflow waterfall model rather than a regular one. As a consequence of early amortisation triggers, the sequence of payment to the tranches are adjusted so that, both the interest and principal payments of the senior tranches get repaid first, before the cashflow is utilised for subordinate tranches. In case of stop replenishment trigger, the credit enhancement account or the excess interest account will not be replenished from the cashflow received; rather, the cashflow received goes towards interest and principal amounts of senior and subordinate tranches. The trigger rules for the threshold, the different cashflow waterfall models are coded in terms of smart contracts, which gets executed, once the monthly cashflow amounts flow into the blockchain platform (from the servicer collection systems). Cumulative Default Rate, expressed as a percentage, equates to the ratio of Principal Balance of all the assets which became Defaulted, as on a specific month to the Original Pool Balance. Triggers are used to modify the operation of the deal, for example: the ending of replenishment and start of amortisation prior to the end date of the revolving period (early amortisation triggers); changes to the priority of payments such that principal redemption of senior notes rank higher than interest payments to subordinated notes (acceleration triggers); pro rata principal payment is changed to sequential payment (acceleration triggers); or that interest on junior notes are deferred to allow for a faster redemption of senior notes (interest deferral triggers).

The TECHNICAL ADVANCEMENT of this invention lies in providing a block-chain enabled securitization platform along with auto-review and auto- alerts. The use of this system and method provides a secure environment for providing smart contracts on a blockchain pertaining to securitized assets, thereby decreasing costs, improving speed, eliminating inconsistencies and errors. Additionally, it provides data transparency and authenticity to the network and the process of securitization with fast feedback and reduced latency. While this detailed description has disclosed certain specific embodiments for illustrative purposes, various modifications will be apparent to those skilled in the art which do not constitute departures from the spirit and scope of the invention as defined in the following claims, and it is to be distinctly understood that the foregoing descriptive matter is to be interpreted merely as illustrative of the invention and not as a limitation.

Claims

CLAIMS,

1. A blockchain based smart securitization method comprising the steps of:

- by a blockchain-enabled securitization database;

- hosting a plurality of first content items (securities);

- by a blockchain-enabled securitization processor;

- identifying a first content item (securities), from said blockchain- enabled securitization database;

- defining a tag per first content item;

- linking said defined tag(s) with said associated first content item(s);

- pooling a plurality of selected first content items, said selection being based on pre-defined selection criteria, to form a second content item (securitization pool);

- determining a plurality of third content items (tranches),

corresponding to said second content item, by breaking said second content item into tranches based on pre-defined rules;

- defining a smart contract, corresponding with said third content

items, with pre-defined rules and pre-defined trigger points, as defined by an artificial intelligence based rule engine;

- executing said smart contract, corresponding with said third content items, with pre-defined rules and pre-defined trigger points, as defined by an artificial intelligence based rule engine;

- by a blockchain-enabled network processor;

- determining an ORIGINATOR NODE, in said blockchain-enabled network, with said first content item and said second content item;

- hashing said second content item and serving said content item via an ISSUER NODE in said blockchain-enabled network;

- allowing, through a SERVICER NODE, on said blockchain-enabled network, an ISSUER of said ISSUER NODE to pre-define rules and

1 triggers of said smart contract to allow an INVESTOR to engage with said third content items in correlation with said triggers and said rules;

- allowing, through an INVESTOR NODE, on said blockchain-enabled network, an INVESTOR to engage said third content items in correlation with said triggers and said rules to achieve ownership of said third content items in an immutable rule-based, trigger-based, transactional engagement with said third content items.

2. A block-chain based smart securitization platform comprising:

- a blockchain-enabled securitization database configured to host a plurality of first content items (securities);

- a blockchain-enabled securitization processor comprising:

- a tag definition mechanism (TDM) configured to defined a tag per first content item [security (S)] per securitized asset per customer, a plurality of first content items [securities (S)] forming a second content item [securitization portfolio (SP)], said tag being a blockchain enabled tag;

- a linking mechanism (LM) configured to link each defined tag, immutably, to a first content item [security (S)], said linking mechanism being a blockchain enabled linking processor;

- a reviewing node (RN) configured to allow a reviewer to review integrity of said first content item [security (S)] by means of ratings computed by said platform;

- a rule engine (RE) configured for auto-execution of a smart- contract in case of pre-defined trigger events;

- a scanning module (SM) configured to scan documents pertaining to said first content item [security (S)], said scanning module being communicably coupled to a Loan Management System (LMS) in order

2 to fetch data from said customer’s LMS to an intermediate database before conversion of second content item (securitisation) from a pool of said selected first content items [security (S)];

- an AI engine (AIE) configured to identify document type and extract pre-determined information pertaining to at least a first content item [security (S)];

- a blockchain-enabled network processor configured to determine a block- chain enabled network comprising an ORGINATOR NODE on said network, an ISSUER NODE on said network, a SERVICER NODE on said network, and an INVESTOR NODE on said network, characterised in that:

- said ORGINATOR NODE, on said blockchain-enabled network, configured to read and edit extracted data from said AI engine (AIE);

- said ISSUER NODE, on said blockchain-enabled network, configured to receive assigned second content item [securitization portfolio (SP)] from said ORIGINATOR NODE, said first content item of said received assigned second content item being hashed and stored per first content item, and further configured to be provided with a Graphical User Interface to provide a unified view of all second content item [securitization portfolio (SP)] associated with said issuer;

- said SERVICER NODE, on said blockchain-enabled network, configured such that an ISSUER can upload a SERVICER document per pool, thereby authorizing a SERVICER so that said SERVICER can look at said first content items [securities (S)] and said second content item [securitization portfolio (SP)], said SERVICER being configured to approve a services assignment process, said SERVICER being provided with a provided with a Graphical User Interface to view all the services associated said

3 Services’s corresponding second content item [securitization portfolio

(SP)];

- an aggregation engine configured to provide an Aggregate Rating of second content item [securitization portfolio (SP)], in order to determines if a customer, associated with a first content items [securities (S)], is risky and to associate a computed risk with second content item [securitization portfolio (SP)]to provide an Aggregate Rating of the pool of securities; and

- an INVESTOR NODE, on said blockchain-enabled network, configured to allow investors to enter into a transactional engagement (invest) into pre-defined trenches (third content items) of second content item [securitization portfolio (SP)], vide said triggers.

3. The platform as claimed in claim 2 wherein, said platform comprising a tag database configured to store a plurality of such tags is stored in a tag database.

4. The platform as claimed in claim 2 wherein, said platform comprising criteria applying node configured to apply at least an eligibility criterion to said pool of securities to create said second content items

[securitization portfolio (SP)].

5. The platform as claimed in claim 2 wherein, said platform comprising a comparator configured to compare data from said originator node with data from said customer’s Loan Management System (LMS) to check for discrepancies in data.

6. The platform as claimed in claim 2 wherein, said platform comprising a selector node configured to allow an originator, through said originator

4 node, to select said first content items’ records and to assign it to said second content items to be brought on to said blockchain-enabled network to form a blockchain enabled pool of securities.

7. The platform as claimed in claim 2 wherein, said platform comprising an issuer node configured to allow an issuer, through said issuer node, to approve said first content items assigned to said second content item (pool).

8. The platform as claimed in claim 2 wherein, said platform comprising an issuer node configured to allow an issuer, through said issuer node, to divide said second content items (pool of securities) into different third content items (trenches) based on parameters for slicing said pool.

9. The platform as claimed in claim 2 wherein, said rule engine being configured to provide a private blockchain network in order to control / restrict access to an administrator- specific blockchain network.

10. The platform as claimed in claim 2 wherein, said rule engine being configured to provide trigger events for auto-execution of contracts.

11. The platform as claimed in claim 2 wherein, said rule engine being configured with rules defined in accordance with pre-defined regulatory framework compliance modules in order to check for compliances, in order to generate alerts in relation to matching or unmatching of pre- defined compliances.

12. The platform as claimed in claim 2 wherein, said rule engine comrpsing a trigger engine configured with a set of pre-defined

5 triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an ‘early amortisation trigger’ being configured to be triggered in the event of cumulative default figures, obtained from periodic collections, exceeding pre-defined threshold percentages.

13. The platform as claimed in claim 2 wherein, said rule engine comprising a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an‘stop replenishment trigger’ being configured to be triggered such that a credit enhancement account or an excess interest account is not replenished from cashflow received; rather, said cashflow received is channeled towards interest and principal amounts of senior and subordinate tranches.

14. The platform as claimed in claim 2 wherein, said rule engine comprising a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an‘acceleration trigger’ being configured to be triggered such that changes to priority of payments are made in a manner that principal redemption of senior notes rank higher than interest payments to subordinated notes (acceleration triggers) and pro rata principal payment is changed to sequential payment (acceleration triggers).

15. The platform as claimed in claim 2 wherein, said rule engine comprising a trigger engine configured with a set of pre-defined triggers, to ensure said transactional engagement vide said pre-defined triggers, characterised in that, an‘interest deferral trigger’ being configured to be triggered such that interest on junior notes are deferred to allow for a faster redemption of senior notes.

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