Computer system and method for programmatic collateralization services
A computer system processes a digital representation of an illiquid asset, to confirm accuracy of the digital representation and value of the asset, and generates an asset-information table indicating where the various sections of the digital representation are stored. The system also generates an asset-value token, financial-return tokens, and a data structure that includes a self-executing program. The program associates the asset-value token with the financial-return tokens, so that the illiquid asset becomes a collateral for a decentralized loan transaction implemented using blockchain technology. The use of blockchain technology for decentralized loan transactions enables immutable data traceability.
1. An automated method of collateralizing an illiquid asset, the method comprising the steps of:
receiving, by a first server, an electronic document comprising a digital representation of the illiquid asset, the digital representation identifying a financial interest in the illiquid asset by a borrower;
hashing, by the first server, the digital representation of the illiquid asset to generate a first hash value;
recording, by the first server, the first hash value on a first blockchain;
storing, by the first server, the digital representation of the illiquid asset at a first memory location;
generating, by the first server, an asset-information table that associates a location of the first hash value on the first blockchain with the first memory location;
receiving, by the first server, an asset-valuation data concerning the illiquid asset;
storing, by the first server, the asset-valuation data at a second memory location;
hashing, by the first server, the asset-valuation data to generate a second hash value;
recording, by the first server, the second hash value on the first blockchain;
updating, by the first server, the asset-information table to associate a location of the second hash value on the first blockchain with the second memory location;
generating, by a second server, an asset-value token comprising an association with the updated asset-information table;
recording, by the second server, the asset-value token on a second blockchain;
determining, by the second server, an amount of digital currency for an automated digital transaction based on a programmed set of rules using the asset-value as a parameter;
generating, by the second server, a data structure comprising a self-executing digital program for performing the automated digital transaction, the data structure including the asset-value token; and
recording the data structure on the second blockchain;
wherein the automated digital transaction involves loaning the amount of digital currency at a rate of interest determined using the programmed set of rules, and wherein the illiquid asset, via the asset-value token, constitutes a collateral for the amount of digital currency being loaned.
2. The method of claim 1 , further comprising a step of periodically updating at least one of the digital representation of the illiquid asset and the asset-valuation data of the illiquid asset after the amount of digital currency has been loaned.
3. The method of claim 2 , wherein the step of periodically updating at least one of the digital representation of the illiquid asset and the asset-valuation data of the illiquid asset after the amount of digital currency has been loaned comprises updating the asset-information table.
4. The method of claim 1 , wherein the step of generating a data structure comprises generating a financial-return token.
5. The method of claim 4 , further comprising a step of having the second server provide access to the asset-information table, in the first server, to an entity possessing the financial-return token.
6. The method of claim 4 , wherein the financial-return token is selected from a set comprising a return-interest token and a governance token.
7. The method of claim 6 , wherein the return-interest token is selected from a set comprising a senior return-interest token and a subordinate return-interest token.
8. The method of claim 1 , wherein the first blockchain and the second blockchain are one and the same.
9. A system for performing a collateralized loan transaction, comprising:
a first server including a first hardware processor and configured to:
receive an electronic document comprising a digital representation of an illiquid asset, the digital representation identifying a financial interest in the illiquid asset by a borrower;
hash the digital representation of he illiquid asset to generate a first hash value;
record the first hash value on a first blockchain;
store the digital representation of the illiquid asset at a first memory location;
generate an asset-information table that associates a location of the first hash value on the first blockchain with the first memory location;
receive an asset-valuation data concerning the illiquid asset;
store the asset-valuation data at a second memory location;
hash the asset-valuation data to generate a second hash value;
record the second hash value on the first blockchain; and
update the asset-information table to associate a location of the second hash value on the first blockchain with the second memory location; and
a second server, communicatively coupled to the first server, the second server including a second hardware processor and configured to:
generate an asset-value token comprising an association with the updated asset-information table;
record the asset-value token on a second blockchain;
determine an amount of digital currency for an automated digital transaction based on a programmed set of rules using the asset-value as a parameter;
generate a data structure comprising a self-executing digital program for performing the automated digital transaction, the data structure including the asset-value token; and
record the data structure on the second blockchain,
wherein the automated digital transaction involves loaning the amount of digital currency at a rate of interest determined using the programmed set of rules, and wherein the illiquid asset, via the asset-value token, constitutes a collateral for the amount of digital currency being loaned.
10. The system of claim 9 , wherein the first server is further configured to periodically update at least one of the digital representation of the illiquid asset and the asset-valuation data of the illiquid asset.
11. The system of claim 10 , wherein the first server is further configured to periodically update the asset-information table.
12. The system of claim 9 , wherein the second server is further configured to generate a financial-return token.
13. The system of claim 12 , wherein the second server is further configured to provide access to the asset-information table in the first server to an entity possessing the financial-return token.
14. The system of claim 12 , wherein the financial-return token is selected from a set comprising a return-interest token and a governance token.
15. The system of claim 14 , wherein the return-interest token is selected from a set comprising a senior return-interest token and a subordinate return-interest token.
16. The system of claim 9 , wherein the first blockchain and the second blockchain are one and the same.
17. An automated method of collateralizing an illiquid asset, the method comprising the steps of:
hashing, by a first server, a received digital representation of the illiquid asset to generate a first hash value, the digital representation identifying a financial interest in the illiquid asset by a borrower;
recording, by the first server, the first hash value on a first blockchain;
storing, by the first server, the digital representation of the illiquid asset at a first memory location;
generating, by the first server, an asset-information table that associates the first hash value on the first blockchain with the first memory location;
receiving, by the first server, an asset-valuation data;
storing, by the first server, the asset-valuation data at a second memory location;
hashing, by the first server, the asset-valuation data, to generate a second hash value;
recording, by the first server, the second hash value on the first blockchain;
updating, by the first server, the asset-information table to associate the second hash value with the second memory location;
generating, by a second server, an asset-value token comprising an association with the updated asset-information table;
recording, by the second server, the asset-value token on a second blockchain;
determining, by the second server, an amount of digital currency for an automated digital transaction based on a programmed set of rules using the asset-value as a parameter;
generating, by the second server, a data structure comprising a self-executing digital program for performing the automated digital transaction, the data structure including the asset-value token; and
recording the data structure on the second blockchain;
wherein the automated digital transaction involves loaning the amount of digital currency at a rate of interest determined using the programmed set of rules, and wherein the illiquid asset, via the asset-value token, constitutes a collateral for the amount of digital currency being loaned.
18. The method of claim 17 , further comprising a step of periodically updating at least one of the digital representation of the illiquid asset and the asset-valuation data of the illiquid asset after the amount of digital currency has been loaned.
19. The method of claim 18 , wherein the step of periodically updating at least one of the digital representation of the illiquid asset and the asset-valuation data of the illiquid asset after the amount of digital currency has been loaned comprises updating the asset-information table.
20. The method of claim 17 , wherein the step of generating a data structure comprises generating a financial-return token.
21. The method of claim 20 , further comprising a step of having the second server provide access to the asset-information table, in the first server, to an entity possessing the financial-return token.
22. The method of claim 20 , wherein the financial-return token is selected from a set comprising a return-interest token and a governance token.
23. The method of claim 17 , wherein the first blockchain and the second blockchain are one and the same.