Dubai, UAE, December 8th, 2025, Chainwire
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The first pilot project with Franklin Templeton, Zodia Custody, Avalanche, and CMS shows that bilateral credit can now be securely used in digital asset custody.
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The launch at Abu Dhabi Finance Week 2025 highlights a major step forward in building strong credit systems for institutions.
SemiLiquid, a company that helps institutions with credit, has announced the launch of its Programmable Credit Protocol (PCP) at Abu Dhabi Finance Week 2025. This new system allows institutions to use credit for digital and tokenized assets that they hold in custody. The best part is that they don’t have to move the assets to do this. This is a big step forward in the world of digital capital markets. The protocol was developed and launched in Abu Dhabi, and it will soon be available around the world. This shows how Abu Dhabi is becoming a top place for digital assets and financial innovation.
The launch is supported by a successful test done with Franklin Templeton, Zodia Custody, Avalanche, Presto Labs, M11 Credit, Oasis Foundation, and CMS. In the test, Franklin Templeton’s daily-yielding tokenized money-market fund, BENJI, was used as collateral. This collateral stayed the same throughout the loan, based on agreed terms and automatic rules. This test showed how institutions can keep the daily yield while giving lenders security over the assets. This setup removed counterparty risk without needing to move any collateral.
"Programmable assets need programmable credit," said Rico van der Veen, Co-Founder and CEO of SemiLiquid. "PCP provides the missing piece that institutions need – a clear, secure legal system that combines the trust of traditional finance with the speed of programmable assets. This is a big step forward, moving from small changes to a strong foundation for institutional credit. The environment at Abu Dhabi Global Market has helped us create our solution within a safe framework that supports digital asset growth."
“SemiLiquid’s PCP brings together creative leaders to solve problems in institutional credit,“ said Anoosh Arevshatian, Chief Product Officer at Zodia Custody. “By taking part, Zodia Custody wants to build custodial systems that can be trusted and help grow scalable and programmable credit.”
"Programmable credit shows how banks and lenders can work with credit inside secure systems. This does not affect enforceability, compliance, or speed of settlement. Avalanche’s strong, high-performance system, together with SemiLiquid’s credit protocol, creates a clear way to grow institutional use. This has been developed in a region that is a starting point for the next generation of on-chain financial markets," said Khalid Dannish, Head of MENA at Ava Labs.
“Private credit is going digital, and this pilot proves how it can be done legally and compliantly,” said Matthew Nyman, Digital Assets Lead at CMS. “CMS is proud to support the infrastructure bringing automated, custody-native credit to institutional markets.”
While tokenized assets are expected to reach $10 trillion by 2030, credit systems are still stuck in old ways. More than 70% of institutional financing still involves lots of paperwork and transfers between different accounts and systems. This creates risks and delays, making it harder for tokenized assets to be used as real, financeable collateral.
SemiLiquid’s pilot program has shown that the technology and legal systems are ready. The company is moving on to Phase II, which will start in early 2026. This phase will add more integrations with custodians, different types of collateral, and more regions. In the future, they will also offer lending with less collateral, backed by verified solvency checks, and a system that works across different markets.
"Credit is the lifeblood of capital markets," added Rico van der Veen, Co-Founder and CEO of SemiLiquid. "With PCP, programmable credit has arrived - and it's ready for institutional deployment."
For more information, users can visit https://pcp.co/
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About SemiLiquid:
SemiLiquid provides the system that powers the future of institutional credit. It is built on secure rails for custody. Its Programmable Credit Protocol (PCP) makes lending easier and automatic. This brings the trust of traditional finance and the speed of modern markets together into one safe, efficient, and connected credit system.
About Zodia Custody
Zodia Custody is a platform for digital assets, designed for institutions. It has support from Standard Chartered, along with Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD. Zodia Custody offers services like custody, treasury, and settlement solutions. These services help institutional investors around the world fully use the potential of digital assets. Zodia Custody makes this easy, safe, and reliable.
Zodia Custody is registered with the Financial Conduct Authority, the Central Bank of Ireland, the Commission de Surveillance du Secteur Financier, and has a license with the Hong Kong Companies Registry.
Zodia Custody implements the requirements of the 5AMLD and applies the same standards as Standard Chartered relating to AML, FCC, and KYC. It implements the requirements of the FATF Travel Rule. Zodia Custody Limited is registered in the UK with the FCA as a crypto asset business under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Zodia Custody (Ireland) Limited is registered with the Central Bank of Ireland as a VASP under Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended). Zodia Custody (Ireland) Limited was established in Ireland in August 2021. Zodia Custody (Ireland) Limited is registered with the CSSF in Luxembourg as a Virtual Asset Service Provider in accordance with article 7-1 (2) of the law dated 12 November 2004 on the fight against money laundering and terrorist financing, as amended. Zodia Custody (Hong Kong) Limited is registered with the Registry for Trust and Company Service Provider with License Number TC009245 under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), Cap. 615 in respect of its custodial activities in digital assets.
For further information on Zodia Custody, users can visit: https://zodia-custody.com/
Contact
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Vinita Kullai
YAP Global
vinita@yapglobal.com
