Ranking
Where the notes sit relative to banks and other creditors, and what happens in a default.
Private credit
Borrow from many investors, not only a bank, and pay each of them from one register.
Your business can offer notes, a loan with set terms, to many investors at once. The payments are scheduled, the terms are written down and investors mainly want to be paid on time. You run the notes on the Asset Tokenization platform, which keeps the register and pays every investor on schedule. Our team helps design the terms, what backs them and the reporting.
- Typical instruments
- Bonds, secured notes, loan participations
- Cash flow
- Scheduled interest and principal
- Key design point
- Collateral and ranking
What issuers want
Debt is already a set of rules. We build them into the security.
Companies issuing bonds, lenders refinancing a loan book and sponsors of secured or structured credit tend to want the same things. Reach lenders beyond the usual bank and a few funds. Accept smaller tickets without extra paperwork per lender. Pay interest and principal to every holder on the right date, with a record of each payment. Handle transfers, early redemptions and amendments without rebuilding the register.
A debt instrument is already defined by its terms: amount, coupon, dates, ranking and security. That makes it a natural fit for a digital security, where eligibility and transfer rules are checked automatically and payments run from the current register.
Typical structures
| Corporate bond or note | Secured lending | Structured credit | |
|---|---|---|---|
| Issuer | The operating company or a financing SPV. | An SPV that holds the loan and its collateral. | An SPV that holds a pool of loans or receivables. |
| What backs it | The issuer's business and balance sheet. | Specific collateral: property, equipment, receivables. | Cash flows from the underlying pool. |
| Payments | Fixed or floating coupon, bullet or amortising. | Interest and principal as the borrower pays. | Paid through a waterfall, often in senior and junior tranches. |
| Key documents | Terms and conditions, prospectus or exemption. | Loan and security agreements, trustee or agent arrangements. | Servicing agreement, tranche terms, reporting pack. |
Illustrative only. Confirmed and executed by qualified local counsel.
What investors look for in private credit
Collateral
What secures the debt, how it is valued and who can enforce it on behalf of holders.
Borrower quality
Accounts, cash flow cover and the history of the borrower or originator.
Covenants
What the issuer promises to do and not do, and how breaches are reported.
Servicing and reporting
Who collects payments, who reports on arrears and how often holders hear about it.
The rules that usually apply
Bonds and notes are transferable securities in most jurisdictions, so public offers usually need a prospectus or an exemption. Structured credit can bring securitisation rules, which in the EU include disclosure and risk-retention requirements. Lending directly to consumers or small borrowers may need a lending licence, and a trustee or security agent is often needed so that many holders can act as one.
We coordinate this with qualified counsel. Who may hold each tranche, from where and in what amount is then built into the security.
When tokenization is not the right tool
- The borrower cannot produce regular, reliable reporting for the life of the notes.
- The collateral cannot be enforced cleanly on behalf of many holders.
- A single bank facility would fund the need more cheaply and faster.
- The credit only works if a secondary market exists. We can introduce venues, but no one can promise liquidity.
Expert setup and support for private credit
Included in onboarding or added as you need them, around the platform you run.
Financial design
Coupon, amortisation, tranching and the payment waterfall, with base, upside and downside cases. Financial design
Structure & jurisdiction
Issuer vehicle, security package and trustee or agent arrangements. Structure & jurisdiction
Distribution & ongoing management
Scheduled payments, redemptions, amendments and transfers. Distribution & ongoing management
Investor rules
Eligibility per tranche, country restrictions and holding limits. Investor rules
Questions we get from issuers of debt
Can we issue several tranches?
Yes. Each tranche can be a separate security with its own terms and its own investor rules, paid in order through the waterfall.
How are interest payments made?
The issuer funds the payment, and the platform calculates each holder's share from the current register. Institutional custody is kept separate from operating funds.
What if the borrower defaults?
The terms and security documents decide that, not the technology. What the platform adds is an exact, current list of holders for notices, votes and any enforcement.
Summaries of public frameworks, not legal advice. Structures are confirmed and executed by qualified local counsel. Asset Tokenization is a technology and advisory provider; the issuer remains responsible for the offering.
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