How DAC Lends Against Digital Assets

Digital Asset Custodians (DAC) provides collateralised credit facilities to sophisticated individuals and institutional clients secured by digital assets such as BTC, ETH and other high quality tokens. Our model is built around secure custody, conservative loan-to-value ratios and a transparent approach to pricing based on collateral stability.

The information on this page is a general overview of how DAC structures its lending process and how collateral quality feeds into indicative pricing. It is intended for sophisticated individuals, institutional, accredited and other non-retail clients only and does not constitute an offer of credit.

Who We Serve

DAC's lending products are designed for sophisticated holders of digital assets who wish to access liquidity without selling their holdings. Typical counterparties include:

• Corporates and operating businesses with digital asset treasuries
• Hendge funds, trading firms and market makers
• Web3, fintech, and gaming firms
• Family offices
• Sophisticated and accredited individual holders of digital assets

DAC does not provide mass retail or consumer lending, and does not market digital asset services to the general public.

Our Lending Process

Every facility follows a structured process designed to be clear, repeatable and risk aware:

1. 1. Enquiry
   You submit a short enquiry form outlining your organisation or individual structure, digital asset profile, desired facility size, goals and basic KYC/AML information.
2. 2. Initial assessment
   DAC reviews the enquiry, assesses eligibility and performs an analysis of proposed collateral and use of funds.
3. 3. Indicative terms
   If suitabale, DAC may provide non-binding, indicative terms that include an estimated facility size, target loan-to-value ratio (LVR), estimated rate range and high level covenants.
4. 4. Onboarding & due diligence
   Subject to mutual interest, DAC completes full KYC, AML and onboarding including corporate or personal documentation, beneficial ownership, sanctions, and PEP screening.
5. 5. Collateral approval & custody set up
   Proposed collateral is evaluated using DAC's Stability Rating (SR) system and custody arrangements are established. Assets are held in segregated, institutional grade custody under the agreed structure.
6. 6. Drawdown & monitoring
   Once documentation is signed and collateral is in place, DAC funds the facility. The position is then monitored continuously against agreed LVR thresholds and collateral quality metrics.
7. 7. Repayment & collateral release
   Upon the timely full repayment of the facility, DAC will release the collateral back to your designated custody arrangements, subject to final verification and operational checks.

Collateral quality and pricing

Pricing and loan parameters at DAC are influenced by a Stability Rating (SR) that assesses the quality of each collateral asset, considering factors such as liquidity, market depth, historical volatility, protocol risk and trading behaviour, and produces a score between 0 and 100.

For practical use, DAC groups assets into three tiers. Each tier is associated with indicative rate and LVR ranges. The ranges below are illustrative only and may vary by counterparty and market conditions.

Final parameters are determined on a case by case basis, taking into account the full collateral mix, circumstances and structure of the transaction.