The solution allows for subdivisions of real estate with regard to loans and ownership in order to expand their real estate mortgage offerings to a wider demographic through leveraging blockchain technology which enables the conversion of an illiquid asset into a digital asset, which can then be owned by multiple stakeholders.

1. Securitizing financial transactions
using DLT
Difficulty in subdividing
tangible assets for loans
purposes
Challenges faced by banks 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 productBenefits of using blockchain
Enables conversion
of an illiquid asset
into a digital asset,
which can be owned
by multiple
stakeholders
Illiquid asset
Trust Fast Liquid
Blockchain services completion
Inefficient in the point-to-
point information sharing
system
High administrative cost with
paper-based documentation
Complicated process of
completing transactions and
transferring ownership of
assets
Subdivide
Transparency
and trust
between
market
participants
Real-time
transaction
Illiquid assets
trading
Fractional
ownership
Digital asset
Investor Investor Investor Investor
Varun Mittal
Global Emerging Markets
FinTech lead
varun.mittal@sg.ey.com
Contact us
FinTech Hub
www.ey.com/sg/FinTechHub