System and method of initiating a collateral action based on a smart lending contract
A system for data collection is disclosed. The system may include a data collection circuit to monitor a status of a loan and the loan's collateral, and a smart contract circuit automatically initiate at a substitution, a removal, or an addition of one or items from the collateral for the loan based on a smart lending contract in response to one of the status of the loan or the status of the collateral for the loan. The system may also include a blockchain service circuit to interpret a plurality of access control features for at least one party associated with the loan and record the substitution, removal, or addition in a distributed ledger for the loan.
1. A system, comprising:
a smart contract circuit structured to:
create a smart lending contract for a loan between a set of parties and including a collateral for the loan, wherein the collateral includes one or more physical items;
a data collection circuit structured to monitor a status of the loan and the collateral including the one or more physical items, wherein the data collection circuit is structured to monitor the status of the collateral including the one or more physical items by collecting monitoring data from a set of data sources that include:
an Internet of Things (IoT) system configured to monitor an environment of the collateral including the one or more physical items as monitoring information, the IoT system including a set of sensors physically positioned on at least one of: the one or more physical items, a container for the one or more physical items, or a package for the one or more physical items, to collect sensor information therefrom, and configured to associate the sensor information sensed by the set of sensors with a unique identifier for the collateral including the one or more physical items, and
at least one of: a camera system, a networked monitoring system, an internet monitoring system, a mobile device system, a wearable device system, a user interface system, or an interactive crowdsourcing system, and
wherein the monitoring data indicates at least one attribute of the one or more physical items including an age of the one or more physical items, a condition of the one or more physical items, a history of the one or more physical items, a storage condition of the one or more physical items, or a geolocation of the one or more physical items;
a valuation circuit structured to use a valuation model to determine a value for the collateral based on the status of the collateral including the one or more physical items;
the smart contract circuit further structured to:
automatically initiate at least one of a substitution, a removal, or an addition of a physical item from the one or more physical items for the collateral for the loan when the value for the collateral determined by the valuation circuit is outside a predetermined range, to thereby adjust the value for the collateral to be within the predetermined range; and
a blockchain service circuit structured to:
record the at least one of the substitution, removal, or addition of the physical item in a distributed ledger for the loan;
record data regarding the one or more physical items for the collateral in the distributed ledger for the loan, wherein the data regarding the one or more physical items includes the monitoring data indicating the at least one attribute of the one or more physical items;
interpret a plurality of access control features corresponding to at least one party of the set of parties associated with the loan to provide access to the data regarding the one or more physical items to the at least one party through an application programming interface (API),
wherein the plurality of access control features include access control instructions from a lender of the set of parties to allow the at least one party to access the data regarding the one or more physical items through the API; and
receive information including the monitoring information from the IoT system and the sensor information associated with the unique identifier from the set of sensors and to store the information in a blockchain of the distributed ledger for the loan,
wherein the data collection circuit is further structured to use the information to monitor the status of the loan; and
a secure access control interface structured to provide the at least one party with access to the information.
2. The system of claim 1 , wherein the status of the loan is determined based on a status of at least one of an entity related to the loan and a state of a performance of a condition for the loan.
3. The system of claim 2 , wherein the state of the performance of the condition relates to at least one of a payment performance or a satisfaction of a covenant for the loan.
4. The system of claim 1 , further comprising:
wherein the status of the loan is determined based on a status of at least one entity related to the loan and a state of performance of a condition for the loan;
wherein the performance of the condition relates to at least one of a payment performance or a satisfaction of a covenant for the loan; and
wherein the data collection circuit is further structured to determine compliance with the covenant by monitoring the at least one entity.
5. The system of claim 1 , wherein the valuation circuit further comprises a transactions outcome processing circuit structured to interpret outcome data relating to a transaction in collateral and iteratively improve the valuation model in response to the outcome data.
6. The system of claim 1 , wherein the valuation circuit further comprises a market value data collection circuit structured to monitor and report on marketplace information relevant to a value of the collateral.
7. The system of claim 6 , wherein the market value data collection circuit is further structured to at least one of monitor at least one of pricing data or financial data for an offset collateral item in at least one public marketplace, or construct a set of offset collateral items for valuing the collateral using a clustering circuit based on an attribute of the collateral.
8. The system of claim 1 , wherein the smart contract circuit further comprises a loan management circuit structured to specify terms and conditions of the smart lending contract that governs at least one of: terms and conditions of the loan, a loan-related event, or a loan-related activity.
9. A method, comprising:
creating a smart lending contract for a loan between a set of parties and including a collateral for the loan, wherein the collateral includes one or more physical items;
monitoring a status of the loan and the collateral including the one or more physical items, the monitoring including collecting monitoring data from a set of data sources that include: an Internet of Things (IoT) system configured to monitor an environment of the collateral including the one or more physical items as monitoring information, the IoT system including a set of sensors physically positioned on at least one of: the one or more physical items, a container for the one or more physical items, or a package for the one or more physical items, to collect sensor information therefrom, and configured to associate the sensor information sensed by the set of sensors with a unique identifier for the collateral including the one or more physical items, and at least one of: a camera system, a networked monitoring system, an internet monitoring system, a mobile device system, a wearable device system, a user interface system, or an interactive crowdsourcing system,
wherein the monitoring data indicates at least one attribute of the one or more physical items including an age of the one or more physical items, a condition of the one or more physical items, a history of the one or more physical items, a storage condition of the one or more physical items, or a geolocation of the one or more physical items;
receiving information including the monitoring information from the IoT system and the sensor information associated with the unique identifier from the set of sensors and storing the information in a blockchain of a distributed ledger for the loan;
using the information to monitor the status of the loan;
providing, via a secure access control interface, at least one party of the set of parties associated with the loan with access to the information;
determining, using a valuation model, a value for the collateral based on the status of the collateral including the one or more physical items;
automatically initiating at least one of a substitution, a removal, or an addition of a physical item from the one or more physical items for the collateral for the loan when the value for the collateral is outside a predetermined range, to thereby adjust the value for the collateral to be within the predetermined range;
recording the at least one substitution, removal, or addition in the distributed ledger for the loan;
recording data regarding the one or more physical items for the collateral in the distributed ledger for the loan, wherein the data regarding the one or more physical items includes the monitoring data indicating the at least one attribute of the one or more physical items; and
interpreting a plurality of access control features corresponding to the at least one party to provide access to the data regarding the one or more physical items to the at least one party through an application programming interface (API),
wherein the plurality of access control features include access control instructions from a lender of the set of parties to allow the at least one party to access the data regarding the one or more physical items through the API.
10. The method of claim 9 , wherein the status of the loan is determined based on a status of at least one of an entity related to the loan or a state of a performance of a condition for the loan.
11. The method of claim 9 , further comprising interpreting outcome data relating to a transaction of one of the collateral or an offset collateral and iteratively improving the valuation model in response to the outcome data.
12. The method of claim 9 , further comprising monitoring and reporting on marketplace information relevant to a value of the collateral.
13. The method of claim 9 , further comprising monitoring at least one of pricing data or financial data for an offset collateral item in at least one public marketplace.
14. The method of claim 9 , further comprising specifying terms and conditions of a smart contract that governs at least one of terms and conditions for the loan, a loan-related event, or a loan-related activity.