System and method for using data in digitized blocks in a blockchain as collateral
Shares in a fund, such as a money market fund (“MMF”), may be created in a digitized format using distributed ledger technology (“DLT”). The digitized shares correspond to physical shares of the MMF that may be obtained at an exchange. The digitized shares may be stored in a distributed ledger, such as a blockchain. The DLT provides for instantaneous transfer of the digitized shares using digital signatures. The digitized shares may be used as collateral, such that a first entity maintains ownership of physical shares in the MMF while transferring control of the digitized shares in the distributed ledger to a second entity.
1 . A system, comprising:
one or more memories storing instructions; and
one or more hardware processors coupled to the one or more memories and executing the instructions to perform operations, the operations comprising:
storing, using at least one processor, a digitized fund comprising a plurality of digitized shares in a distributed ledger comprising a plurality of tokens, wherein each digitized share in the plurality of digitized shares has a corresponding physical share in a plurality of physical shares of a physical fund, and wherein the plurality of tokens store information associated with the plurality of digitized shares and the plurality of tokens are signed using digital wallet signatures corresponding to owners of the plurality of digitized shares;
storing, in a share record ledger in a memory storage, records associated with the plurality of physical shares and corresponding owners of the plurality of physical shares, wherein the share record ledger is separate from the distributed ledger;
exchanging, digitized shares using tokens in the distributed ledger, wherein the digitized shares and corresponding physical shares of the physical fund are owned by a first party and the digitized shares are exchanged as collateral with a second party while the physical shares remain with the first party, wherein the exchange further comprises:
accessing, from the distributed ledger, the tokens signed using a first digital wallet signature associated with a first digital wallet of the first party; and
signing the tokens using a second digital wallet signature associated with a second digital wallet of the second party, wherein the exchange of the digitized shares is instantaneous after the signing of the tokens;
maintaining, in the share record ledger a record of the physical shares that are associated with the first party after the exchange of the corresponding digitized shares with the second party; and
storing, in the share record ledger, the second digital wallet signature associated with the record of the physical shares.
2 . The system of claim 1 , further comprising:
receiving a new token, wherein the new token corresponds to a new digitized share of the digitized fund and wherein the new digitized share corresponds to a physical share of the physical fund.
3 . The system of claim 2 , further comprising:
generating the new token in response to executing an order for purchasing the physical share of the physical fund.
4 . The system of claim 1 , further comprising:
receiving instructions from a collateral management exchange for transferring ownership of the digitized shares of the digitized fund from the first party to the second party, wherein the instructions identify the digitized shares, the first digital wallet signature, and the second digital wallet signature associated with the second party.
5 . The system of claim 1 , wherein the distributed ledger is a blockchain.
6 . The system of claim 1 , wherein one digitized share corresponds to one token in the distributed ledger.
7 . A system, comprising:
one or more memories storing instructions; and
one or more hardware processors coupled to the one or more memories and executing the instructions to perform operations, the operations comprising:
purchasing physical shares of a money market fund on behalf of a first party;
recording ownership of the physical shares of the money market fund by the first party in a share record ledger stored in a memory storage;
generating digitized shares that correspond to the physical shares of the money market fund, wherein the digitized shares comprise attributes of the physical shares and a first digital wallet signature associated with a first digital wallet of the first party owning the physical shares;
storing the digitized shares as tokens in a distributed ledger, wherein the tokens are signed using the first digital wallet signature;
designating the digitized shares as a collateral to a second party; and
transferring ownership of the digitized shares from the first party to the second party by signing the tokens in the distributed ledger with a second digital wallet signature associated with a digital wallet of the second party, while maintaining the ownership of the physical shares in the share record ledger in the memory storage as being associated with the first party after the transferring ownership of the digitized shares to the second party, wherein the transfer of ownership of the digitized shares is instantaneous after the signing of the tokens, and wherein the share record ledger is separate from the distributed ledger; and
storing, in the share record ledger, the second digital wallet signature associated with the digital wallet of the second party with the physical shares.
8 . The system of claim 7 , wherein transferring the ownership of the digitized shares in the distributed ledger from the first party to the second party occurs in response to the designating the digitized shares as the collateral.
9 . The system of claim 7 , wherein a record of ownership of the physical shares remains the same irrespective of transfer of ownership of the corresponding digitized shares.
10 . The system of claim 7 , wherein the one or more hardware processors are further executing instructions comprising:
receiving an indication from a collateral management exchange for transferring ownership of the digitized shares to the second party, wherein the indication includes data associated with the digitized shares, the first digital wallet signature, and the second digital wallet signature associated with the second party; and
identifying the digitized shares in the distributed ledger using the first digital wallet signature.
11 . The system of claim 7 , wherein the distributed ledger is a blockchain.
12 . A method, comprising:
purchasing, using a processor, physical shares of a money market fund, the money market fund including a plurality of different securities and the physical shares including a portion of the plurality of the different securities;
generating digitized shares corresponding to the physical shares of the money market fund, wherein the digitized shares comprise attributes of the physical shares;
storing the digitized shares and a digital signature associated with an owner of the physical shares in tokens stored in a blockchain;
storing a record of ownership of the physical shares by the owner in a share record ledger in a memory storage of a computing device, wherein the share record ledger is separate from the blockchain;
designating the digitized shares as collateral for an entity; and
transferring ownership of the digitized shares that are stored in the tokens in the blockchain to the entity, while maintaining the record of ownership of the physical shares by the owner in the memory storage after the transferring, wherein the transferring further comprises:
accessing the token using the digital signature associated with the owner; and
signing the tokens using a second digital signature associated with the entity, wherein transferring the ownership of the digitized shares in the blockchain to the entity occurs in real-time;
storing, in the share record ledger, the second digital wallet signature with the record of ownership associated with the physical shares.
13 . The method of claim 12 , further comprising:
receiving, at the blockchain, an indication with the digital signature, the second digital signature, and information corresponding to the digitized shares.
14 . The method of claim 13 , wherein the record of ownership of the physical shares is associated with the owner irrespective of the transfer of ownership of the digitized shares using the blockchain to the entity holding the digitized shares as collateral.
15 . The system of claim 3 , further comprising:
signing the new token with a digital wallet signature corresponding to a third party associated with the purchasing of the physical share; and
recording in the record the physical share and the third party.
16 . The system of claim 3 , wherein the new token is generated at a computing device separated from devices that store the plurality of tokens on the distributed ledger.
17 . The system of claim 3 , further comprising:
executing a subscriber application on a computing device, the subscriber application generating the order to purchase the physical share of the physical fund and store a digital wallet with at least one digital wallet signature.
18 . The system of claim 1 , further comprising:
signing the plurality of tokens using the digital wallet signatures corresponding to the owners of the plurality of digitized shares.