1.
Securitizing financial transactions using
distributed ledger technology (DLT)
Case study
Context:
A bank wanted a solution to allow for
subdivisions of real estate with regard to loans
and ownership in order to expand their real
estate mortgage offerings to a wider
demographic.
The bank’s client intended to invest in real
estate, but did not have sufficient funds to
purchase the property alone. The platform
enabled multiple investors to own a portion of
the property and pay the corresponding
proportionate mortgage.
Value-added:
The blockchain technology helped break the
ownership of illiquid assets into pieces,
decreasing the barriers for investment and
increasing the liquidity of illiquid assets. The
trading process is also shortened and simplified
by removing the intermediary.
EY’s role and activities:
• Analyzing the business requirements to
configure an appropriate blockchain node
subdivision system
• Benchmarking of vendor platforms and
objective analysis leading to platform
selection
• Implementing the platform and integrating
it with existing infrastructure
Client impact:
• Acquiring more users who prefer to insure
according to their requirements
• Increasing existing users’ time of purchase
— meanwhile, reminding the users regularly
when they need to be covered by insurance
• Big data collection analyzed to optimize
insurance product
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Challenges faced by banks
Difficulty in subdividing tangible
assets for loans purposes
Complicated process of completing
transactions and transferring
ownership of assets
Inefficient in the point-to-point
information sharing system
High administrative cost with paper-
based documentation
Benefits of using blockchain
Trust Fast Liquid Subdivide
Transparency
and trust
between market
participants
Real-time
transaction
Illiquid assets
trading
Fractional
ownership
Blockchain services completion
Enables conversion
of an illiquid asset
into a digital asset,
which can be owned
by multiple
stakeholders
Illiquid asset
Digital asset
Investor Investor Investor Investor
Varun Mittal
EY Global Emerging Markets FinTech
Leader
varun.mittal@sg.ey.com
Website: www.ey.com/sg/fintechhub
Email: fintech@sg.ey.com
Sahil Gupta
EY ASEAN FinTech Manager
sahil.gupta@sg.ey.com

2.
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