 
 
Disclaimer: The below article is sponsored, and the views in it do not represent those of ZyCrypto. Readers should conduct independent research before taking any actions related to the project mentioned in this piece. This article should not be regarded as investment advice.
SemiLiquid today announced the global debut of its Programmable Credit Protocol (PCP). This custody-native credit infrastructure enables institutions to unlock credit directly against digital and tokenized assets, without transferring collateral out of custody.
The launch took place at Abu Dhabi Finance Week 2025, signaling a major leap forward for the evolving digital capital markets ecosystem. The new protocol builds on a groundbreaking pilot executed in partnership with Franklin Templeton, Zodia Custody, Avalanche, Presto Labs, M11 Credit, Oasis Foundation, and CMS.
In the demonstration, Franklin Templeton’s tokenized money-market fund, BENJI, served as collateral that remained fully encumbered throughout the loan term while still generating a daily yield. The pilot showcased enforceable, automated credit agreements conducted entirely within custody, eliminating counterparty risk and proving legal viability for institutional deployment.
Rico van der Veen, SemiLiquid’s Co-Founder and CEO, described PCP as the missing component for institutions operating with programmable assets. He noted that the protocol establishes a shared legal and operational framework that blends the reliability of traditional finance with the automation and composability of digital asset markets. Abu Dhabi’s regulated digital asset environment, he added, played a crucial role in helping the team advance the product.
 
Zodia Custody’s Chief Product Officer, Anoosh Arevshatian, echoed this sentiment, emphasizing that custodians are positioned to become the trust anchor for scalable credit solutions built directly into custody workflows. Avalanche’s regional leadership also highlighted the pilot as proof that lending can be executed natively within digital asset infrastructure without compromising compliance or transaction speed.
Legal partner CMS underscored that the initiative demonstrates a compliant pathway for digital private credit markets, a sector expected to expand as tokenization accelerates. With global tokenized assets projected to reach $10 trillion by the end of the decade, existing credit processes, still dominated by bespoke documents, fragmented collateral movements, and manual settlements, have lagged. SemiLiquid’s program aims to replace those legacy systems with standardized, automated, and custody-native rails.
Following the pilot’s success, SemiLiquid is preparing for Phase II, expected in early 2026. The next stage will expand the range of supported custodians, collateral types, and jurisdictions, and introduce capabilities such as under-collateralized lending backed by solvency attestations and harmonized enforceability standards across markets.
Van der Veen noted that credit remains central to capital markets, and with PCP, institutions finally have access to a credit mechanism built for the digital era.
About SemiLiquid
SemiLiquid builds infrastructure for modern institutional credit markets, offering an automated, standardized lending framework based on custody-native mechanisms. Its Programmable Credit Protocol connects traditional financial standards with the programmability of blockchain-based assets.
About Zodia Custody
Zodia Custody is an institutional-focused digital asset custodian supported by Standard Chartered alongside partners such as Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD. The company provides regulated custody, treasury management, and settlement solutions across key jurisdictions, including the United Kingdom, Ireland, Luxembourg, and Hong Kong. Additional details are available at zodia-custody.com.