Turn tokenized assets into regulated liquidity.
A Canton-native collateralized credit system where qualified institutions borrow GBP stablecoin or fiat against tokenized Gilts, Treasuries, treasury-backed instruments - and, over time, the full universe of regulated digital assets. Built inside the regulatory perimeter. Designed as core market infrastructure, not an add-on.
Not crypto lending. A regulated collateralized liquidity engine.
Monee is building the regulated rails for tokenized capital markets - issuance, custody, trading, and settlement in one unified layer. Lending is the layer that turns those passive tokenized assets into usable liquidity. It should not be bolted on after launch. It should be designed in as core infrastructure from day one.
Regulated collateralized lending
Institutional credit against eligible tokenized financial assets, with legal control, supervision, and full auditability.
DeFi lending
No anonymous pools, no governance tokens, no unaudited code paths.
Crypto margin
No retail leverage products or speculative margin trading.
Yield farming
No incentive emissions, no reflexive token economics.
One flow. Fully controlled. End to end.
Pledge
A qualified institution pledges tokenized Gilts, Treasuries, or other eligible collateral held on Monee infrastructure.
Value and apply risk rules
The Heartbit engine prices the collateral, applies haircuts and dynamic LTV limits, and generates loan terms in seconds.
Lock on Canton
Collateral is locked through Daml smart contracts and legal pledge structures - controllable, private, enforceable.
Disburse liquidity
The borrower receives GBP stablecoin, fiat, or settlement liquidity through Monee rails - atomic where possible.
Monitor continuously
LTV, prices, coupons, maturities, ratings, and sanctions status are tracked in real time, with automated alerts.
Repay or enforce
Repay and release collateral - or breach triggers margin call, top-up, and controlled, fail-closed liquidation paths.
The loan is the visible output. Collateral intelligence is the product.
Heartbit owns the full collateral brain - every decision, state transition, and audit record across the lending lifecycle.
Monee owns the rails. Heartbit owns the lending brain.
Regulated digital market infrastructure
- Issuance of UK Gilts and US Treasuries as regulated digital securities
- Administration, custody, and lifecycle management through DSD-aligned infrastructure
- Secondary trading through regulated MTF pathways
- Atomic settlement aligned with DSD and central bank frameworks
- GBP stablecoin and digitally native settlement instruments
- Regulatory access - BoE/FCA DSS, FCA stablecoin cohort, Synchronisation Lab, CBI sandbox
Collateral intelligence and loan lifecycle
- Eligibility, valuation, haircut, and dynamic LTV engines
- Loan origination, interest accrual, and fee logic
- Margin call, top-up, and fail-closed liquidation automation
- Accounting, reconciliation, and regulator-grade audit replay
- Years of collateralized lending with our own capital against volatile collateral - risk discipline learned first-hand
- Experience designing and building plug-and-play B2B lending infrastructure for exchanges, custodians, and brokers - first exchange pilot ahead
Institutional finance already knows this product. We make it digital, atomic, and programmable.
| Traditional finance | Crypto markets | Monee × Heartbit |
|---|---|---|
| Lombard lending | BTC-backed loan | Borrow against tokenized securities |
| Repo / reverse repo | Collateralized stablecoin loan | Borrow cash against tokenized Gilts and Treasuries |
| Tri-party collateral management | Smart-contract escrow | Canton-native collateral lock and control |
| Margin credit | Exchange margin facility | Institutional credit line against eligible digital securities |
| Intraday liquidity | Instant stablecoin liquidity | Settlement liquidity against high-quality collateral |
A regulatory window is open. The lending layer is still unclaimed.
Sovereign debt is the largest and most liquid asset class on earth - the collateral foundation of capital markets. Monee is bringing it onchain inside central bank environments. What does not exist yet is a compliant way to turn those tokenized assets into liquidity. That is the layer this partnership builds.
Monee operates inside the rooms where the future market is being designed.
Few early-stage firms hold a documented presence across this many official programs at once. This is the differentiator the lending vertical builds on.
BoE / FCA Digital Securities Sandbox
Gate 1 passed October 2025. Progressing toward Gate 2 and a combined DSD / MTF model under the UK DSS framework.
FCA Stablecoin Cohort
One of four firms selected to test stablecoin innovation - building a stablecoin for settlement and cross-border digital securities flows.
BoE Synchronisation Lab
Testing settlement of HM Treasury’s Digital Gilt Instrument (DIGIT) and cross-currency settlement alongside RTGS renewal.
Central Bank of Ireland Sandbox
2026 Innovation Sandbox participant - enabling UK-Ireland cross-border payments and securities settlement.
Invited by HM Treasury to participate in the Digital Gilt (DIGIT) tender process, with a bid submitted. Targeting DSD / MTF licensing in the UK and DLT Trading and Settlement System authorization under the EU DLT Pilot Regime.
The collateral pools are enormous. The compliant liquidity venues do not exist yet.
Tokenization is scaling - the forecast range is the headline
Roughly $0.6T of tokenized real-world assets today, with forecasts spanning $2T by 2030 (McKinsey, excluding crypto and stablecoins) up to $18.9T by 2033 (BCG × Ripple). The opportunity is real; first movers inside regulated frameworks set the standards everyone else inherits.
Fixed income leads adoption
IOSCO identifies fixed income and money market products as the leading tokenized asset classes today - exactly the collateral the lending engine is designed around. Institutional demand for yield-bearing digital instruments backed by short-term government debt already exists. Compliant venues to borrow against them do not.
From sandbox to licensed market infrastructure.
Platform built largely in stealth - roughly six years of development aligned with the evolving direction of UK and EU digital securities frameworks across architecture, custody, banking, and legal foundations.
Admitted to the Bank of England / FCA Digital Securities Sandbox (Gate 1). Invited by HM Treasury to the Digital Gilt (DIGIT) tender process; bid submitted.
Selected for the Central Bank of Ireland Payment Innovation Sandbox. Participation in the Bank of England Synchronisation Lab for RTGS-DLT settlement testing. Progression toward DSS Gate 2.
DSS Gate 2 testing environment. Institutional pilots conducted within sandbox parameters.
Progression toward full DSD / MTF authorization in the UK and DLT TSS authorization under the EU DLT Pilot Regime. Commercial launch, direct institutional onboarding, secondary market operation at scale - with the lending vertical live on top.
Built with institutional partners. Tested with regulators.
Ten sectors. One coherent thesis.
RWA tokenization, digital securities infrastructure, RegTech, sovereign debt digitization, stablecoins and settlement cash, cross-border payments and FX settlement, institutional custody, treasury-backed cash management, private credit, and real assets. Lending is the one capability that compounds across all ten - every tokenized asset becomes more valuable when it can be financed.
The window will not stay open
LSEG, Partior, HSBC Orion, Ctrl Alt, and others are testing settlement and tokenized collateral in the same official programs. The institutions that define the collateral and credit standards for tokenized sovereigns now will be very hard to displace later. Lending converts regulatory positioning into recurring commercial value - spread income, collateral management fees, and sticky institutional relationships.
The Monee Collateral & Lending Engine.
A regulated collateralized lending engine for tokenized financial assets - sitting across all four pillars of the Monee stack: issuance, administration and custody, trading, and settlement.
GBP stablecoin credit against tokenized short-duration UK Gilts and US Treasuries.
Sovereign fixed income is Monee’s stated first market - the largest, most liquid asset class and the collateral foundation of capital markets. Starting here means the simplest story, the safest collateral, the cleanest regulator conversation, and a direct fit with the GBP settlement asset and Canton DvP workflows. Everything else expands from this primitive, asset by asset, risk tier by risk tier.
Twelve states. Every transition decided, recorded, and replayable.
Each step is a decision point the engine owns - and an auditable event the regulator can replay.
Participant onboarding
Borrower, lender, or liquidity provider is onboarded.
Entity eligibility, jurisdiction, KYC / KYB / AML, qualified investor statusAsset onboarding
Asset exists on Monee / Canton infrastructure.
Collateral eligibility, issuer, custody statusCollateral valuation
The system prices the asset continuously.
Price source, staleness, FX, duration, liquidityHaircut and LTV
The risk engine sets borrowing capacity.
Max LTV, margin call LTV, liquidation LTVLoan quote
Borrower sees terms in seconds.
Rate, tenor, currency, fees, covenantsCollateral lock
The tokenized asset is pledged and controlled.
Legal pledge, smart contract lock, custodian controlDisbursement
Borrower receives GBP stablecoin or fiat.
Mint, transfer existing stablecoin, or bank paymentMonitoring
The system watches LTV and risk events.
Price moves, coupons, maturity, downgrades, sanctionsMargin event
LTV breaches a threshold.
Top-up, partial repay, added collateral, controlled liquidationRepayment
Borrower repays principal and interest.
Stablecoin burn, fiat settlement, accounting closeRelease
Collateral is unlocked.
Full release, partial release, or substitutionReporting
Regulators and institutions receive records.
Audit, risk, reconciliations, client asset reportsFive products. One engine. Sequenced for trust.
Collateralized GBP stablecoin loan
Pledge tokenized Gilts or Treasuries, receive GBP stablecoin. The simplest story and the cleanest fit with Canton DvP.
- Simple, institutional-friendly product
- Uses the Monee stablecoin as cash leg
- Native fit with Canton and DvP settlement
- Needs regulatory approval and a ready stablecoin
- Requires reliable valuation, liquidation, and a legal pledge opinion
Repo-style facility
An institution sells a tokenized Gilt or Treasury with an agreement to repurchase. Often more natural for banks and treasury desks than a loan.
- Deeply familiar to institutions
- Best fit for sovereign collateral
- Supports intraday and overnight liquidity
- Legal and accounting complexity
- Haircuts and margining must be precise
Portfolio credit line
A revolving credit line against a basket of eligible tokenized assets - the high-value, sticky relationship product.
- Higher value, recurring revenue
- Deepens the institutional relationship
- More complex risk engine
- Concentration and correlation monitoring required
Settlement liquidity / intraday credit
Temporary liquidity to complete settlement, with collateral locked for minutes or hours. The product most deeply tied to Monee’s infrastructure vision.
- Low duration exposure
- Institutional-grade, settlement-native
- Needs precise atomic execution
- Tight integration with MTF, DSD, and the cash leg
Securities lending
Asset holders lend tokenized securities to borrowers, often against cash collateral - a natural capital markets product for market makers.
- Creates yield for holders
- Supports market making and secondary liquidity
- Complex regulation, market abuse controls
- Recall and default mechanics
Sequencing principle
We do not build lending for everything first. We build a narrow, regulator-friendly credit primitive - tokenized short-term sovereign collateral into GBP stablecoin liquidity - then expand asset by asset, risk tier by risk tier.
Every asset class gets a policy. Not every asset class gets a green light on day one.
| Collateral type | Role in lending | Complexity |
|---|---|---|
| GBP stablecoin / tokenized cash | Cash collateral and repayment asset | Low |
| Short-term UK Gilts | Best first collateral | Low - medium |
| US Treasuries | Best first collateral after Gilts | Low - medium |
| Treasury-backed stable-value instruments | Cash-management collateral | Medium |
| Money-market-like tokenized products | Yielding collateral | Medium |
| Corporate bonds | Later-stage collateral | Medium - high |
| Public equities | Later-stage collateral | High |
| Regulated fund interests | Selective collateral | High |
| Private credit | Bespoke, low-LTV only | Very high |
| Real assets / infrastructure | Not MVP - bespoke underwriting | Very high |
| BTC / crypto assets | Optional bridge - familiar to Heartbit, not core to the Monee thesis | Medium - high |
Highlighted rows = MVP scope. Tokenization improves administration and transferability - it does not automatically create exit liquidity. The eligibility engine enforces that distinction.
Every actor, one coordinated workflow.
Borrower
Institution or qualified investor holding tokenized assets.
Lender
Monee balance sheet, bank, fund, treasury desk, or liquidity provider.
Monee
Regulated infrastructure - issuance, custody, trading, settlement layer.
Heartbit
Lending engine, collateral and risk logic, automation, loan lifecycle.
Custodian / DSD
Controls and records asset ownership with legal protection.
MTF / execution venue
Liquidation and collateral sale venue.
Stablecoin issuer
Issues and redeems the GBP settlement token.
Bank / RTGS connection
Fiat settlement, reserves, redemption, payment rails.
Regulator / auditor
Oversight, reporting, sandbox validation.
Canton participants
On-ledger parties running workflows through Canton.
Canton-native by design. Not a database with blockchain garnish.
The key state transitions of every loan - pledge, lock, disbursement, margin call, liquidation, release - live on the ledger as Daml contracts. Off-chain services feed it. Regulators can replay it.
Smart contracts hold collateral locks, loan state, settlement state, and the audit trail - private to the parties involved.
Price feeds and oracles, KYC / AML, banking and stablecoin rails, custody and execution venues, regulatory reporting.
Institutions will not lend on a glass ledger. Canton keeps positions private by construction.
Canton Network is a public Layer 1 built for financial institutions with privacy at the core. A participant node does not store a full global ledger - it holds a localized, private view of only the contracts relevant to its hosted parties. Synchronizers and the Global Synchronizer enable atomic, interoperable transactions across independent Canton networks without exposing positions.
| Sensitive data | Why it must stay private |
|---|---|
| Loan size | Reveals liquidity needs |
| Collateral portfolio | Reveals strategy and exposure |
| Margin status | Could cause market signaling |
| Liquidation thresholds | Can be exploited by other participants |
| Counterparties | Commercially sensitive relationships |
| Pricing terms | Competitive and private |
Twelve Daml contract objects carry the loan from offer to audit.
Daml is the smart contract language for composable financial applications on an abstract ledger model - rights, obligations, and asset states expressed as code that aligns with the legal agreements behind them.
Designed around the concepts regulators and institutions actually use.
DvP / PvP
Asset and payment - or two payments - move together or not at all. The Synchronisation Lab work centers on DvP for tokenized UK government bonds.
DSD & MTF
Who legally records ownership of digital securities, and where secondary trading and liquidation can happen - Monee’s target UK operating model.
DLT TSS
The EU model combining trading and settlement in one authorized system under the DLT Pilot Regime - Monee’s EU pathway.
Repo & tri-party collateral
The closest TradFi analogues to sovereign-collateral lending, and how large institutions already manage collateral safely.
Financial collateral arrangements
The legal structures that make pledge, enforcement, and liquidation actually stick. Legal control beats smart-contract control.
Settlement finality & client assets
When a transfer is legally irreversible, and who owns what if a party fails - the foundations of institutional trust.
Conservative by default. Fail-closed by design.
Static LTVs fail during stress. The engine runs dynamic haircuts, tiered thresholds, and stress scenarios - and it never liquidates blind.
| Tier | Collateral | Max LTV | Margin call | Liquidation | Notes |
|---|---|---|---|---|---|
| 0 | GBP stablecoin / fiat cash | 95 - 100% | 98% | 100% | Settlement and cash collateral |
| 1 | Short-term Gilts / T-Bills | 80 - 90% | 88 - 92% | 92 - 95% | Best MVP collateral |
| 2 | Medium-duration Gilts / USTs | 70 - 85% | 82 - 88% | 88 - 92% | Adds duration risk |
| 3 | Long-duration sovereigns | 55 - 75% | 70 - 80% | 80 - 85% | Rate-sensitive |
| 4 | IG corporate bonds | 45 - 70% | 65 - 75% | 75 - 82% | Credit plus liquidity risk |
| 5 | Public equities | 35 - 60% | 55 - 65% | 65 - 75% | Volatility, market hours |
| 6 | Private credit | 10 - 35% | Manual | Manual | Valuation and liquidity constraints |
| 7 | Real assets / infrastructure | 0 - 25% | Manual | Manual | Not true liquid collateral |
| 8 | BTC, if permitted | 30 - 50% | 55 - 65% | 70 - 80% | Heartbit home turf - optional bridge |
Indicative starting framework, not final credit policy. Highlighted tiers = recommended MVP scope: short-duration sovereign collateral plus GBP stablecoin settlement.
Fixed income risk is a different discipline. The engine is built for it.
With BTC, the key risks are volatility and liquidity. With Gilts, Treasuries, and bonds, the risk surface widens - and each dimension is modeled.
Duration risk
Bond prices fall when rates rise - haircuts scale with maturity.
Credit risk
Issuer downgrade or default, especially in corporates and private credit.
Liquidity risk
A price on screen is not an executable bid - depth is monitored, not assumed.
Basis risk
Token price can diverge from the underlying market price - tracked continuously.
FX risk
Collateral currency and loan currency can differ - hedged or haircut accordingly.
Coupon handling
Who receives interest while collateral is pledged is explicit in every agreement.
Maturity events
Collateral can become cash mid-loan - the engine handles it deterministically.
Corporate actions
Calls, redemptions, substitutions, and restructurings are first-class events.
Settlement calendar
Tokens are 24/7 - underlying market liquidity is not. Policies respect market hours.
The stablecoin is settlement infrastructure - and the engine treats it that way.
Not just a regulated USDT. The lending product is designed around the answers to eight structural questions.
Funding source
Newly minted stablecoin or existing liquidity - balance sheet and reserve impact.
Legal classification
E-money, deposit-like, or settlement token - confirmed by counsel.
Redemption rights
Whether borrowers can redeem directly - and the liquidity risk that creates.
Reserve backing
What backs the token - reserve quality drives redemption confidence.
Reserve yield
Who owns the economics on reserves - a core commercial question.
Mass redemption
Stress behavior - fully backed does not mean instantly liquid under all conditions.
Freeze and control
Sanctions and control capabilities, exercised under clear governance.
Cross-border use
UK / EU / FX rules for cross-border settlement flows.
The details that kill lending businesses - engineered out from day one.
Legal control beats smart-contract control
If a court or enforcer disagrees, code is not enough. Every lock has a legal pledge behind it.
Collateral must be transferable to a liquidator
If only whitelisted participants can hold the asset, liquidation can fail. Eligibility checks this upfront.
Tokenized does not mean liquid
Private credit is not liquid because it is tokenized. Tokenization improves admin, not exit liquidity.
Coupon and dividend ownership is explicit
Income rights while pledged are contractual, never assumed.
Maturity events are handled
Collateral can become cash mid-loan - the state machine covers it.
Haircuts are dynamic
Static LTVs fail during stress. Haircuts respond to volatility, liquidity, and duration.
Stablecoin redemption is a liquidity risk
Fully backed does not mean instantly liquid under all conditions. Stress-tested explicitly.
Market hours still matter
The token is 24/7; the underlying market is not. Liquidation policy respects executable hours.
Cross-border adds layered risk
FX, sanctions, and jurisdiction risk - especially UK / EU / Ireland flows - are modeled, not ignored.
No rehypothecation by default
Reuse of pledged collateral is avoided initially, or strictly opt-in - a trust and legal cornerstone.
Liquidation is fail-closed
If price, liquidity, custody status, or legal control is unclear - no blind liquidation. Ever.
Manual override on every critical action
Automation with governance - humans can intervene at every critical state transition.
A practical path to a lending pilot - built together, resourced properly, and validated step by step.
A suggested four-stage roadmap for discussion: starting with a focused design sprint, moving into a sandbox MVP, then validating institutional demand through a controlled pilot. The structure is flexible by design - the goal is to align with Monee on the model that is most practical, compliant, properly resourced, and commercially sound.
The underlying principle is simple: if lending is expected to become a meaningful part of Monee's infrastructure, it should be treated from the beginning as a real product workstream - with dedicated ownership, budget, execution capacity, and a clear path to long-term commercial alignment.
Funded Alignment & Design Sprint
We align on the lending vertical before writing production code: product, risk, legal, technical, operating, and commercial questions in one shared blueprint.
This stage can be structured in the way Monee believes is most appropriate: a funded design sprint, a short-term product engagement, an embedded working group, or another agreed model. The important point is that the work is scoped, resourced, and outcome-driven from day one.
- Lending product blueprint - loan, repo, credit line, and settlement liquidity mapped as possible product paths
- Collateral taxonomy - Gilts, Treasuries, stablecoin, and treasury-backed instruments ranked, with future RWA collateral staged carefully
- Risk framework - LTV, haircut, margin call, liquidation, stress rules, and manual override logic
- Canton workflow map - smart contract and operational state transitions
- Legal and regulatory question map - prepared for counsel and Monee's regulatory priorities
- Commercial structure options - operating model, resource needs, build budget, revenue logic, IP and licensing approach, and a possible future JV path
- Investor and capital narrative - a first view on whether the lending vertical should be funded internally by Monee, supported by existing investors, or packaged as a dedicated capital opportunity
Monee Lending Sandbox MVP
We test a first credit primitive inside Monee's environment. A practical starting point could be a GBP stablecoin or fiat-equivalent credit line against tokenized short-term UK Gilts or Treasuries - subject to Monee's product, legal, and regulatory view.
Because this stage moves from design into actual build work, it should be supported by a clear resource plan before development begins. That could mean a dedicated MVP budget, an internal Monee allocation, an investor-backed workstream, or a structured collaboration agreement that gives both sides the confidence to commit serious time and execution.
- Eligible institutional or qualified participant onboarding
- Collateral lock on tokenized sovereign collateral
- Loan quote with dynamic LTV, haircut, rate, and tenor
- GBP stablecoin or fiat-equivalent disbursement on a test rail
- Price updates, LTV tracking, alerts, and simulated margin-call workflow
- Top-up, partial repayment, and repayment flow
- Principal, interest, and fee logic
- Collateral release after repayment
- Full audit replay of every material event
Institutional Pilot
We validate real institutional demand within sandbox parameters and with a conservative operating scope.
At this point, the collaboration should already have a clear operating model: who leads product, who leads compliance and legal coordination, who leads engineering, who owns ongoing risk operations, and how the commercial upside is shared if the pilot moves toward launch.
- 1 - 3 institutional or qualified participants
- Short-term sovereign debt only as initial collateral
- GBP stablecoin or fiat-equivalent settlement asset
- Conservative LTV at first
- Overnight, 7-day, and 30-day tenors as the initial test set
- Manual liquidation approval before any automation
- No rehypothecation unless explicitly approved later
- Full institutional and regulatory audit trail
- Clear go / no-go criteria for commercial expansion
- Commercial readiness review - pricing, revenue share, operating costs, capital needs, and the investor and funding path
Standing Lending Vertical / JV Option
If the pilot proves traction and both teams agree, the collaboration could evolve into a standing lending vertical under Monee, a formal JV, or another structure Monee believes is most appropriate. The potential scope:
- Institutional lending against tokenized collateral
- Collateral intelligence - eligibility, valuation, haircuts, LTV logic, and concentration rules
- Risk operations - monitoring, margin calls, liquidation workflow, and manual controls
- Liquidity relationships - banks, funds, treasury desks, and credit providers
- Revenue logic - origination fees, spreads, servicing, and collateral management fees
- Expansion path - Gilts → Treasuries → treasury-backed instruments → funds → private credit → other RWAs
- Capital strategy - internal Monee funding, existing investor allocation, a dedicated external raise, or a lending-specific financing vehicle
This stage should only be formalized after the pilot produces enough evidence: product demand, operational confidence, regulatory comfort, and commercial logic. But the possibility should be considered from the beginning, because it affects how the MVP is built, how IP is handled, and how both teams justify the level of focus required.
If it cannot be measured, it cannot be trusted.
| KPI | Target |
|---|---|
| Quote generation | Under 5 seconds |
| Collateral lock confirmation | Under 30 seconds in sandbox |
| Full loan lifecycle test | 100% deterministic |
| Margin-call detection | Under 60 seconds after price update |
| Audit replay completeness | 100% of state transitions |
| Manual override coverage | 100% of critical actions |
| Critical workflow failure handling | Defined fallback path for every major failure mode |
| MVP resource readiness | Build scope, owners, budget, and timeline agreed before development begins |
Several ways to structure it. One recommended starting point for discussion.
The structure should serve the product, the regulatory path, and the long-term commercial opportunity. These are possible models - not demands. The right answer should be decided together based on Monee's priorities, licensing path, capital plan, available resources, and appetite for building lending as a business line.
The main point is not the label. The main point is alignment: if both sides believe the lending vertical can become a meaningful part of Monee's infrastructure, the structure should give it the resources and focus required to move quickly and professionally.
| Model | Description | Upside | Consideration |
|---|---|---|---|
| A · Lending API module | Heartbit supplies a technical lending module that Monee plugs into its stack | Fastest to start, narrowest scope | Useful if Monee wants a limited integration, but it may underuse the full lending opportunity |
| B · Heartbit-led lending layer | Heartbit designs the loan, collateral, risk, reporting, and lifecycle layer inside Monee's infrastructure | Strong product ownership, clear accountability, direct value creation | Requires committed resources, a build budget, and commercial alignment |
| C · Monee Lending vertical, powered by Heartbit Recommended starting point | Lending becomes a dedicated Monee business line or workstream, with Heartbit leading product, risk, and operating design | Strong strategic fit, clear institutional story, easier to resource, long-term alignment | Requires structure, governance, budget, and a shared execution rhythm |
| D · Joint venture lending entity | A shared lending venture built around tokenized collateral and stablecoin liquidity | Highest upside, clean investor story, clear ownership of the lending opportunity | More legal complexity - best considered after pilot validation |
| E · In-house build, Heartbit advising | Monee builds internally while Heartbit supports as a strategic and domain advisor | Low friction and full internal ownership for Monee | Slower execution risk - Heartbit's role becomes advisory rather than operational |
| F · Dedicated capital for the vertical Capital optionality | Capital raised specifically for development, regulatory work, lending liquidity, and institutional pilots | Full focus, faster execution, and a bigger market entry | Requires an investor narrative, a milestone plan, and a governance structure |
| G · Embedded leadership model Practical economics | Heartbit leads the lending workstream from inside the Monee operating structure, with agreed compensation, scope, and upside | Strong execution focus, simple to start, clear day-to-day accountability | Needs clear role definition, time commitment, and commercial terms |
Our recommendation for discussion is to begin with Model C, supported by the practical economics of Model G and the capital optionality of Model F:
Create Monee Lending as a dedicated lending vertical or workstream under Monee, powered by Heartbit's collateralized lending knowledge, product design, risk methodology, and lifecycle architecture.
From there, the structure can remain an internal Monee vertical, evolve into a formal JV under Model D, or raise dedicated capital under Model F if the pilot shows enough traction. This is not presented as a fixed demand - it is a practical way to create focus, accountability, and commercial alignment from the beginning.
The key principle
- Monee provides the regulated infrastructure, institutional environment, settlement rails, and market access
- Heartbit contributes the lending architecture, collateral logic, risk framework, borrower and lender workflow, and operating methodology
- Together, the teams can build the collateralized liquidity layer for regulated tokenized markets
The structure should avoid three weak outcomes
- A narrow vendor module that does not become a meaningful business line
- A fragmented internal build where lending knowledge, product execution, and risk methodology are not fully embedded into the product
- An open-ended discovery process where a strategically important product is developed without the dedicated resources, budget, and operating commitment required to execute properly
Aligned and resourced from day one.
A serious lending vertical requires focused execution, dedicated development, regulatory and legal work, risk design, integrations, liquidity planning, and ongoing operations. The commercial structure should reflect that reality from the first phase - while staying flexible enough for Monee to choose the most appropriate path.
This does not mean every long-term commercial term needs to be solved immediately. It does mean the next phase should be treated as a real product build, not an informal exploration. If both sides want speed, quality, and accountability, the collaboration needs a clear resource model.
A credible lending workstream
Without needing to build every component from zero - the platform gains a structured collateralized liquidity layer designed around institutional tokenized assets.
Platform and distribution
The strategic platform, regulatory environment, institutional distribution, and product context needed to turn its lending knowledge and architecture into a scalable institutional solution - with a clear operating role and commercial alignment for the work required.
A focused lending thesis
Inside a broader regulated market-infrastructure story: clear product, clear collateral, clear risk logic, and a path toward recurring revenue.
Possible model components
Not every component needs to be decided on day one. The first priority is to agree on the right operating model for the design sprint and the sandbox MVP. But once the project moves into architecture, coding, integrations, and regulatory preparation, it should have the budget and structure of a serious product initiative.
Each Monee layer can gain a lending counterpart.
This can become more than advisory input. If Monee chooses to build lending as a real vertical, Heartbit can help design and operate the lending layer that makes tokenized assets financeable: collateral rules, loan lifecycle, risk controls, margin logic, liquidation paths, and reporting discipline.
For this to work well, the lending layer should be embedded early enough to influence the architecture - not added later as a patch. The more lending is treated as a core liquidity function, the more valuable the full Monee stack becomes.
| Monee layer | Heartbit lending layer |
|---|---|
| Tokenized asset issuance | Collateral eligibility rules |
| Custody and asset administration | Collateral control and pledge logic |
| MTF / trading pathway | Liquidation and execution policy |
| Stablecoin / settlement asset | Loan disbursement and repayment logic |
| Institutional onboarding | Borrower and lender workflow |
| Regulatory environment | Risk, reporting, audit, and lifecycle discipline |
The decisions we make together before a line of production code.
Regulation, balance sheet, risk, economics, and resourcing all flow from these answers. The workshop is designed to clarify the correct structure before we overbuild the wrong thing or under-resource the right thing.
Who is the legal lender of record - Monee, a bank or liquidity provider, a fund or SPV, or a joint venture entity?
Everything depends on this answer: permissions, balance sheet, credit responsibility, economics, regulatory perimeter, structure, capital needs, and operating model.
Legal & structure
- Who is the legal borrower - institutional participant, qualified investor, issuer, fund, or another approved entity
- Loan, repo, credit facility, or securities financing classification
- Permissions required at launch
- Default enforcement path
- Insolvency waterfall if a platform party fails
- Role of Monee, Heartbit, lender, custodian, and liquidity provider
Collateral & custody
- First collateral asset - Gilt, UST, or treasury-backed token
- Who controls custody and enforceability
- Liquidation venue - Monee MTF or elsewhere
- Collateral substitution rules
- Rehypothecation policy
- Coupon, maturity, and corporate-action handling
Cash leg & pricing
- Cash leg - GBP stablecoin, fiat GBP, EUR, USD, central bank money, or another settlement asset
- Whether stablecoin can be minted against loan demand
- Who sets prices - oracle design, liability, and fallback procedure
- Coupon and dividend treatment while collateral is pledged
- Rate model, fee model, and spread logic
Commercial, capital & operating model
- Is lending a product feature, a dedicated business line, an embedded Monee department, or a future JV
- What resources are needed for the design sprint and MVP
- Is the first phase funded by Monee, existing investors, a dedicated investor allocation, or a separate raise
- What Heartbit leads, what Monee leads, and what requires joint approval
- The working model if Heartbit is operating as the lending arm inside Monee
- How build budget, compensation, revenue participation, IP, licensing, and future upside are handled
- What evidence is required before expanding beyond the first collateral type
Momentum from the first 48 hours - with scope and resources aligned early.
This is a suggested cadence. The timeline can be adjusted based on Monee's regulatory, technical, and commercial priorities.
We exchange source packs - current product deck, API docs, Canton architecture, stablecoin model, licensing roadmap, current lending and liquidity assumptions, and any relevant investor or funding context.
We jointly define the first lending product - loan vs repo vs credit line - and the first collateral asset: UK Gilt, US Treasury, or treasury-backed token. We also agree what structure is needed to resource the design sprint properly.
Heartbit prepares the lending lifecycle state machine and the draft collateral policy - LTV, haircut, margin, and control logic - for review with Monee.
We review commercial structure options with legal counsel: funded workstream, embedded role, vertical, collaboration agreement, licensing model, JV path, or investor-backed structure.
We build the sandbox prototype across the full loan lifecycle, if both sides approve scope, owners, timeline, and resources.
We run stress simulations - rate spikes, collateral drops, redemption stress, custody outage, oracle failure, and manual override scenarios. Pilot readiness sign-off.
One shared language.
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