[DigitalToday reporter Chi-gyu Hwang (황치규)] Blacklake Digital Markets and Nova Labs have succeeded in putting and transferring a $25 million mortgage loan on the Provenance blockchain.
The Block recently reported that the move is the first case in which an institutional mortgage loan was processed on blockchain from start to finish.
The companies used the following method. They turned each mortgage loan into a unique digital asset on the blockchain. Investors can receive income generated by the mortgages by bundling these digital assets and using them as collateral. Only authorised partners can view information related to the loans.
In the past, reviewing a mortgage pool involved checking only selected samples. Under the new method, it is possible to verify directly on the blockchain whether every loan in the pool meets standards. This is possible without disclosing borrowers’ personal information. Blacklake CEO Al-Qureshi said, “Investors can verify it directly without needing to trust what others say.”