SemiLiquid, a custody-native infrastructure layer for institutional credit, today announced the launch of its Programmable Credit Protocol (PCP) at Abu Dhabi Finance Week (ADFW).
The new infrastructure allows for institutions to activate credit against digital and tokenised assets held in custody – without transferring collateral.
“Programmable assets require programmable credit,” said Rico van der Veen, co-founder and CEO of SemiLiquid.
“PCP delivers the missing rail that institutions need – a standardised, custody-native & shared legal framework that merges the trust of traditional finance with the efficiency of programmable assets.
It was backed by a successful pilot conducted with Franklin Templeton, Zodia Custody, Avalanche Presto Labs, M11 Credit, Oasis Foundation and CMS.
The project was developed and launched in Abu Dhabi, with plans for a global rollout.
“SemiLiquid’s PCP brings together innovative industry leaders in an effort to address the inefficiencies in institutional credit,” said Anoosh Arevshatian, chief product officer at Zodia Custody.
As part of the pilot, Franklin Templeton’s daily-yielding tokenised money-market fund, BENJI, was pledged as collateral and remained locked for the duration of the loan, governed by pre-agreed terms and automated triggers.
“Through our participation, Zodia Custody hopes to establish custodial infrastructure as the trust layer for scalable and programmable credit,” added Arevshatian.
