Create perfected security interests over tokenized collateral by lock,
with a pre‑agreed transfer on default.
Pledging (tokenized) collateral still means bespoke paperwork
Each lender, each custodian, each jurisdiction: a new agreement, a new analysis, a new integration.
- 01 / 03
Drafted each time
A pledge per client and lender, a control agreement per custodian. Months of negotiation between three parties and their counsel.
- 02 / 03
Analysed each time
Each institution forms its own view on each arrangement. The same questions answered again, at cost, for every relationship.
- 03 / 03
Recognised by no one else
An arrangement at one custodian means nothing at another. The collateral a lender can reach is the collateral it has papered.
One framework, signed once, recognised everywhere
One agreement, one analysis per jurisdiction, one integration. The Master Terms apply by reference, identical for every institution.
- 01
A lock, not a transfer
Collateral is ring-fenced in the owner's own account, on the record the transfer agent, broker-dealer or custodian already keeps. Ownership and yield are unaffected and nothing settles until enforcement.
- 02
A receipt, not an assertion
A signed Credit Receipt evidences the position, in a form a counterparty's systems can read without asking anyone.
- 03
Execution, not a request
The delivery instruction is lodged at origination and executes on a validated trigger, limited to what is owed.
The Credit Receipt
Proof of the security interest. What is locked, for whom, under which document, and on what enforcement path.
Proof, not assertion
Issued only once the lock and the funding are both confirmed. A counterparty verifies the signature against the published registry and checks the lock at the Control Location.
Machine-readable, to a published schema
The fields belong to the standard, not to any vendor. A collateral system ingests a receipt as a pledged position without integrating with the Control Location that minted it.
Enforcement fixed in advance
The trigger terms and the delivery account are agreed before the loan is made. On a validated trigger, only what is owed is delivered. No new consent, no discretion.
- Framework
- Master Terms v0.11Collateralized Financing, Schedule v0.11
- Control location
- DVL-LU-0007certified, suite v0.8 · schedule 6d38b2…44ac
- Collateral provider
- DVLP JUHJACGAZZ9V7Z5FLSBW7H6F
- Secured party
- DVLP 8KQW2NDPAX3RLC5T7BHVMY4E
- Collateral
- Tokenized MMF units, 1,250,000marked USD 1,251,875 at 09:00 UTC
- Obligation
- USD 1,000,000LTV 79.9% · threshold 85% · default 92%
- Enforcement path
- Instruction lodged at originationdelivery to pre-verified account, sized to obligation
- Issued
- 2026-11-18 09:00:04 UTCupdated 2026-11-19 09:00:02 UTC
- Signature
- CN=dvl-lu-0007ES256, valid
Illustrative. Field set per Credit Receipt schema v2.0.0. Companion note on fields, storage and practice.
The end state
A standardized security interest over tokenized collateral. Technically enforceable, because it delivers in seconds on default. Legally enforceable, because the documents are drafted under each law. One framework, proven by a machine-readable receipt.
Sign once, face every other signed participant, and default handling is the same wherever collateral is held.
The framework
Every document published by version and hash. Adherence is by signature, not negotiation; a bilateral amendment is of no effect within the framework.
| Document | Version | What it does | |
|---|---|---|---|
| 01 | Master Terms, with its Lane Schedules | v0.11 | The security agreement. Creates the security interest, fixes control and enforcement. Lane Schedules set the terms for each lane. |
| 02 | Participation Agreement | One form per jurisdiction | A rider to the Control Location’s custody agreement, signed once by each participant. Local form for each jurisdiction, in counsel review. |
| 03 | Control Location Adaptation Schedule | v0.8 | Each Control Location’s declared elections: execution window, price sources, supported collateral, reserve, key governance. It can strengthen the framework, never weaken it. |
| 04 | Credit Receipt schema | v2.0.0 | The fields and their meaning. Anyone holding a receipt can verify it; only a certified deployment can mint one. |
Legal
One reasoned analysis per jurisdiction, on the published documents, disclosable to participants and their counsel. The same counsel settles the local Participation Agreement, so documents and analysis cannot drift apart.
Governance
Maintained by Lombard Systems today; intended to transition to an independent body. No participant, including the maintainer, can vary the terms for itself or withhold them from another.
Jurisdictions in the programme
Security interest, control and enforcement under UCC Articles 8 and 9.
Multiple use cases, one standard
The same lock, the same receipt and the same delivery path, whichever lane the position is in. Each lane has its own schedule and its own line on the rate card.
- 01
Collateralized financing
Margin and Lombard lending
Borrow against tokenized stocks, funds, bonds and cash held at the control location. Marks and calls at pre-agreed levels, around the clock.
- 02
Securities lending
Securities lending by pledge
Pledge collateral by lock to borrow stocks. The collateral stays in the borrower’s name, with no transfer of title.
- 03
Uncleared initial margin
IM in place
Post and receive initial margin without moving it to a third-party custodian. The IM Annex incorporates the lock into an existing credit support document.
- 04
Cleared initial margin
Margin to a CCP
Lock eligible collateral at its record keeper in favor of the clearing house, evidenced by the receipt, delivered on the CCP's validated call.
- 05
Repo
Hold-in-custody repo
Collateral locked at its record keeper in favor of the cash lender rather than delivered, evidenced by the receipt, delivered on default. Repo without the settlement leg.
- 06
Register pledges
Registered and private shares
Pledge book-entry or tokenized shares on the transfer agent's register, including private company stock that has no depository at all.
- 07
Fund units
Financing against the fund register
NAV and unit-backed lending against tokenized or registered fund units, locked on the fund's own register by its transfer agent or administrator.
- 08
Digital assets
Crypto-backed credit
Lock digital assets at a qualified custodian in favor of a named lender, with the same receipt and the same delivery path.
Who can run Delivery-versus-Lock
Any institution that keeps the authoritative record for an asset, or holds the keys to it, can be a control location. It deploys the software on its own premises, keeps its own clients and keys, and never lends.
Select a party
Registered, tokenized and private shares, fund units. The lock is an entry on the register the agent already keeps.
Control location
Deployment is certified against the published suite; the control location keeps its own clients, register and keys.
One license, one rate card
One published license, identical for every institution, metered on locked collateral value in basis points per annum. No tiers, no discounts.
LICENSE METERING · ONE MONTH
Metered from the receipts it minted
| LANE | LOCKED | RATE | PER YEAR |
|---|---|---|---|
| Collateralized financingtokenized securities · margin and Lombard loans150m · 8 bp | 150m | 8 bp | 120,000 |
| Securities lending by pledgetokenized securities50m · 8 bp | 50m | 8 bp | 40,000 |
| Uncleared initial margintokenized money-market funds100m · 2 bp | 100m | 2 bp | 20,000 |
| License, per year | 180,000 | ||
| Invoiced this month | 15,000 | ||
Illustrative, USD. Borrowers and lenders are never invoiced by the maintainer.