Why This Works
Pledged-asset lending transforms how financial institutions serve modern wealth. The economics work because secured lending has fundamentally different risk characteristics than unsecured consumer credit, and because borrowers pledging appreciated assets have behavioral incentives aligned with repayment.
Better for institutions. Better for members.
Pledged-asset lending creates value for both sides of the transaction. Institutions get secured loans with dramatically lower loss rates than unsecured consumer credit. Members get liquidity without selling appreciated assets, preserving upside exposure and avoiding taxable events. The economics compound: better rates attract better borrowers, better collateral reduces loss severity, lower losses enable better rates.
Find your use case
Community Banking
Compete with private credit. Serve your best commercial clients, entrepreneurs and business owners who are asset-rich but cash-constrained.
Credit Unions
Access the wealth your members already have. Offering liquidity against alternative assets delivers member wellness and retention.
Regulatory Complexity
UCC Article 12 creates new legal infrastructure for digital collateral. We built compliance architecture that satisfies Article 12 control requirements alongside traditional True Lender and model risk frameworks.
Orderly Resolution Rails
When the worst happens, legal perfection pays off. UCC Article 12's control-based perfection with super-priority means your security interest has clear priority. Our infrastructure provides the rails for orderly liquidation without your institution necessarily taking possession of the asset.
Smart contracts monitor collateral value against margin limits in real-time. Breaches trigger automated workflows before situations deteriorate.
Pre-wired workflows for public securities liquidation via custodian or digital asset liquidation via exchange. Article 12 control enables direct action without borrower cooperation.
Automated generation of notices, cure period tracking, and audit trails for the liquidation event. The documentation structure exists because the examiner will ask.