How it works
The value chain, end to end.
A Crypto Bill is a documented, enforceable claim — not a pointer, not a metaphor. Here is the chain that makes it real.
01. Real property
Off-chain · Physical asset
Physical, appraisable real estate — the bedrock of the value chain. Every loan in the pool is secured by a lien on a specific parcel.
02. Mortgage / loan
Off-chain · Legal instrument
Debt originated or acquired against that property. Underwritten to institutional standards with disciplined loan-to-value ratios.
03. Digital mortgage bond in an SPV
Legal wrapper
Loans are pooled to diversify away single-borrower risk, then held by a bankruptcy-remote Special Purpose Vehicle — legally isolated from the issuer.
04. Crypto Bill (token)
On-chain · Programmable
The SPV issues permissioned ERC-3643 tokens representing a proportional claim on the pool. Compliance is enforced at the smart-contract layer.
05. Hold, transfer, redeem
Lifecycle
Mortgage payments flow into the SPV. Holders exit via redemption windows or by trading on a compliant secondary venue.
Over-collateralization
Bills are issued against a fraction of the appraised collateral — creating a buffer that absorbs price declines and defaults before holders are impaired.
Target LTV: 60–80% · Senior secured lien
Debt, not equity
A mortgage bond gives a senior, secured claim. On default, collateral can be foreclosed and sold — a stronger floor than fractional equity in a single building.
Honest framing
Value is anchored, not pegged. Real estate moves; mortgage pools have defaults. Diversification, over-collateralization, and reserves dampen volatility — they do not eliminate it. NAV floats.
Read our full risk & security posture →