Lombard Systems Secures $4 Million for Tokenized Asset Financing Standardization Efforts

Lombard Systems Secures $4 Million for Tokenized Asset Financing Standardization

Lombard Systems, previously known as SemiLiquid/PCP, has announced a significant funding achievement, successfully raising $4 million through pre-seed and seed rounds. This funding was primarily led by Ethereal Ventures with substantial contributions from Alps Capital, First Commit Capital, Veris Ventures, Atka, and others. The capital infusion aims to escalate the adoption and implementation of the Delivery-versus-Lock (DvL) standard, which plays a pivotal role in the financing of tokenized assets.

In an increasingly digital economy, tokenization of assets is shifting from theoretical discussions to practical applications, yet the infrastructure supporting collateralized financing has remained relatively stagnant. Traditional financing practices often necessitate that borrowers relinquish collateral to lenders or third-party agents, complicating and delaying enforcement processes in instances of default. With the rise of tokenized assets, such as stocks and funds, Lombard Systems is poised to streamline these processes.

To date, significant strides have been made in the tokenization of securities. Notably, the Depository Trust Company has begun its tokenization services as of October 2026, allowing for a new landscape where tokenized U.S. stocks can be traded under certain conditions set by the SEC. However, a legal framework still needs to be established to allow asset holders to borrow against their holdings effectively.

Lombard's DvL standard seeks to fill this gap, providing a technical and legal framework that enables institutions to utilize tokenized and digital assets as collateral while maintaining ownership. Under this standard, assets can remain securely held in the name of their owners at custodians, broker-dealers, or transfer agents. Lenders will receive a legally enforceable security interest, evidenced by a cryptographically signed Credit Receipt, allowing them to uphold their rights while the borrower maintains beneficial ownership of their assets until a default occurs, at which point only the owed amount is transferred to the lender.

Rico van der Veen, Co-Founder and CEO of Lombard Systems stated, "Tokenized stocks and funds are scaling now. The origination and enforcement of loans against tokenized collateral must be as swift as the assets themselves while being firmly grounded in existing securities law." He emphasized that the DvL standard keeps assets in their existing securities accounts, mitigating risks and simplifying the lending process by offering upfront agreement on enforcement terms.

The investment marks a crucial moment for Lombard Systems as it approaches its first institutional deployments. Further integrations will involve collaborations with banks, broker-dealers, and transfer agents to enhance the operational framework surrounding DvL.

As Eeshaan Sachatheva, Co-CIO at Ethereal Ventures, pointed out, "Tokenization is opening up real opportunities for financial institutions in trading and settlement, with substantial potential to extend these advantages to financing." Lombard Systems is playing a vital role in this evolution, establishing a standardized framework for maximizing the efficiency and usability of tokenized assets.

The DvL standard not only accommodates Lombard and margin loans, but it also supports financing against tokenized money market funds, securities lending through pledges, and initial margins for uncleared derivatives under existing ISDA Master Agreements. This framework is designed for seamless deployment by institutions, whether directly or through technological partnerships, ensuring that the transition into a more efficient and effective system is as fluid as possible.

For additional insights, including founder communications and an overview of the DvL standard, visit their official site. Institutions interested in adopting this progressive framework can register at dvlstandard.org, where additional resources and detailed information will be made available in early 2027.

About Lombard Systems

Lombard Systems is noted for creating and maintaining the Delivery-versus-Lock (DvL) standard while also providing essential tools and infrastructure necessary for institutions to lend against and accept tokenized and digital assets without transferring them. With offices located in both Dubai and New York, Lombard Systems is strategically positioned at the intersection of traditional finance and emerging digital asset markets.