Blockchain-based applications are probably the next big thing – revolutionizing the way Trade is currently being carried out in various assets (whether the object being traded is currency, rechargeable gift cards or commodities=Bill of Lading), the autonomous performance of contingent contracts, voting mechanisms, as well as numerous other services.
The revolutionizing aspect stems from the deployment of technological infrastructure principles used in Bitcoin, thereby enabling a decentralization of Trade and of the provision of services, all carried out in a secured fashion without having to make use of intermediary elements such a Clearing Houses. The result is simplified, more efficient and expedient processes.
HMS is currently developing, in collaboration with an Israeli start-up company, a platform for the selling of loan portfolios and re-insurance portfolios to the financial sector.
The platform proposes a solution for the following challenges:
- Standardization, efficiency and simplification of Loan Portfolio selling in the financial sector – to buyers in Israel and abroad, as well as the selling of insurance portfolios to re-insurers.
The following aspects are to be enhanced:
- The Bid process – which is being handled by the portfolio managers
- The process of acceptance of offers
- Information sharing and contracts being Information Rooms
- The portfolio buyers are able to select the trades in the portfolios or in part of them
- Managing the daily or periodical updates to be given to portfolio buyers
- The calculation of fees, profitability and more.
- An option of a simple secondary market management and maintenance – for the benefit of loan portfolios and re-insurance portfolios which got sold.
The premise which lies at the base of Blockchain technological idea is the Distributed Ledger – whereby a copy of the entire information regarding asset ownership – is maintained via several distributed nodes.
Each node maintains a full copy of the Asset Owners Book, which then gets updated by each trade executed via the node.
Each asset trade is executable only by the asset owners – via a secure mechanism.
Work and decision processes are set in place – for the maintenance of an identical distributed copy of the Owners Book.
Here is an explanatory clip outlining the Blokchain mechanism:
For further details – please contact Reshef Radin, Board member and Head of Advanced Products and Solutions Department at HMS.