SemiLiquid Launches Programmable Credit Protocol on Avalanche, Enhancing Institutional Credit with Tokenized Collateral

Launch of Programmable Credit Protocol: SemiLiquid introduced its Programmable Credit Protocol (PCP) at Abu Dhabi Finance Week 2025, enabling institutions to activate credit against digital assets held in custody without transferring collateral, marking a significant advancement in digital capital markets.

Successful Pilot Program: The protocol's development was supported by a pilot involving major financial institutions, demonstrating the ability to retain asset yields while providing lenders with enforceable security, thus eliminating counterparty risk.

Future Expansion Plans: SemiLiquid plans to advance to Phase II in early 2026, which will include broader integrations with additional custodians and collateral types, as well as capabilities for under-collateralized lending.

Significance for Institutional Credit: The PCP aims to address inefficiencies in institutional credit by providing a standardized, custody-native legal framework, facilitating the transition of private credit to a digital format while ensuring compliance and settlement speed.