The problem
Corporate and private debt is locked in illiquidity
A receivable carries the risk of one specific debtor. To buy, transfer, pledge or accept it in payment, every counterparty must assess that particular debtor — so the claim barely circulates. Factoring turns it into cash once, at a discount, but the instrument itself stays dead: non-standard, tied to a single debtor, non-transferable. An enormous amount of value is frozen in this illiquid form no one can use.
01
Single-debtor risk
The debt's value = the reliability of one debtor. Everyone must re-assess it from scratch.
02
No standard
Every claim is its own — in form, term and law. There is nothing to compare or trade.
03
Does not circulate
You cannot pay with it, and it is hard to pledge or transfer. Capital sits idle.
The shift
One obligor instead of a thousand debtors
UDEN takes the claim (assignment) and replaces it (novation) with a standardized, interest-free, perpetual promissory note backed by a single obligor. The specific debtor's risk moves deep into the deal — to liquidity sources, guarantors and insurers; what comes out is homogeneous paper with a predictable obligor. The buyer no longer studies each debtor — they trust the network's standard and rules.
Before · a claim on a debtor
- Risk of one specific debtor
- Non-standard, under its own law and term
- Non-transferable in practice
- Re-underwritten by every buyer
After · a UDEN note
- A single obligor
- Standardized and fungible
- Transferred as a registry record
- Par on demand, at any moment
The instrument
It is a promissory note — not a token, not electronic money
A digital promissory note is a registered, interest-free debt obligation with a defined legal form: a maker unconditionally promises to pay the holder its face value on demand. It exists as a record in a registry and freely circulates between verified accounts. It is transferable by indorsement, recorded as a registry transfer, and passes without holder-to-holder recourse — the title moves, but no earlier holder guarantees payment to a later one. Under every note stands a real debt; the total issued is never greater than the real backing. It is neither a crypto token nor electronic money: what sets it apart is the settlement window (presentment, not an instant counter-payment), the real debt behind every note, and the closed, verified circle.
UDEN does not compete with factoring, insurance or lending — it standardizes their output into one transferable instrument. The network sets the rules and monitors participants; the parties to the deal hold the risk. UDEN is responsible for the standard and the discipline, not for the balance sheet of each deal.
Load-bearing invariant
The holder always gets full face value — on time
The system's single non-negotiable principle. The holder presents a note and receives full value at any moment — without discount and without a maturity. Any deviation (a debtor delay, a debtor default, a liquidity-source failure) is absorbed by a pre-agreed cascade: the credit line, recourse to the originator, insurance, a guarantor, collateral and, ultimately, a full exit option exercised against the obligor of the specific deal. Every loss-bearing branch has an assigned party that restores the system's balance; if there is none, the deal is not made. For the holder, risk disappears — all of it sits inside the specific deal, carried by the various parties to that deal.
How it works · overview
Four steps from claim to circulation
01
Assemble the deal
The parties meet at the virtual table and fix the source of repayment, recourse, the reserve and the cascade. The economics are locked before issuance.
02
Assignment & novation
The claim is assigned to UDEN and simultaneously replaced with notes — with no gap where UDEN owes money.
03
Attestation & issuance
Documents and registry are attested separately and anchored to Bitcoin; notes at full face value are credited to the originator, a portion from originator account to the reserve.
04
Circulation
The note lives in the registry between verified accounts: it is paid with, pledged, split and transferred — or redeemed at par.
Lifecycle · in full
How a deal moves through the system
- Contour A · private
- Contour B · public registry
- Liquidity
- Risk & cascade
Initialization
A request to open a deal may be filed by any interested party — the originator, the debtor or an agent. The initiator sets the subject of the deal and adds the participants known so far.
Every participant must hold an account in the system, and each party passes KYC/AML; while anyone remains unverified, the deal cannot be completed. All of this happens in the private contour — for the public registry, this deal does not yet exist.
Request screening
The system checks the request against the baseline intake conditions and does one of three things: rejects, requests the missing information, or registers the deal and convenes the parties "at the table" to agree the details. This is the first filter — deals that plainly cannot pass are cut, and anything contestable is passed on for negotiation.
Hard reject
Sanctions, an unsupported jurisdiction, a non-assignable / duplicate / already-defaulted claim, size out of bounds, an unlawful underlying.
Request more
Incomplete mandatory data, unclear authority of the parties etc. Not a rejection — a request for what is missing.
Convene the table
Everything passed. Anything contestable by nature goes to the table.
▸Note 1 · Baseline intake conditions
- Parties. Whether the initiator is entitled to act for the named originator. Whether the parties are identifiable. A preliminary screen against sanctions and block-lists — a sanctions hit is cut at once, before full KYC.
- The claim itself. Whether the type is supported (a monetary obligation, a receivable). Whether it is determinable and measurable: a specific debtor, amount, term. Whether it is overdue or in default at filing. Whether the deal currency is supported.
- Assignability and cleanliness. Whether the claim is transferable by nature. Whether there is a known assignment ban or double-pledge risk (at intake — only obvious conflicts; the warranty comes later as a package). Whether the debt has been entered into the system twice.
- Jurisdiction. Whether there is a working UDEN setup for the deal in the requested jurisdiction — a local entity, a legal adapter. No adapter — rejection, a queue for manual handling, or a hold.
- Parameters. Size within bounds: too small a deal does not cover structuring, too large runs into risk limits. Time to maturity within the allowed range.
- Completeness and legality. Mandatory data present (subject, parties, amount, currency, term). The request is internally consistent. The underlying is lawful, no embargo.
The table: agreeing terms
At the table sit the parties to the deal — in particular the originator and the source of early liquidity, and as needed the debtor, the insurer, the guarantor and others. The system and the obligor are themselves parties at the table: they either accept the agreed final configuration or they do not, and they may add their own requirements and recommendations.
The table can be run as a tender: the initiator may request terms from several candidates at once — liquidity sources, guarantors, insurers — that is, open a competition for a role and pick the suitable bids. The initiator's choice binds no one: the right to accept or decline the assembled configuration belongs to every participant. A bid is made for one's own role and terms; the final consent is to the whole assembled deal. Detailed rules of tender, agreement and exit are described separately.
The minimum that must come together — a debtor undertaking to pay on time, an originator accepting recourse if the debtor does not pay on time, a liquidity source standing ready to provide funds on the system's request within a credit line for the deal, and an agreed cascade for deviations. All terms and the structure of the reserve are fixed here as well.
Only the issuance of notes is paid to the system in cash — who exactly pays is for the parties to decide. Compensation to the system for structuring, to the liquidity source for the credit line, and to the insurer, guarantor and other participants is paid not in money but in UDEN notes, which are frozen in the reserve until the debtor settles its obligation, unless the deal provides otherwise.
▸Note 3 · The exit cascade
The risk cascade is not a fixed template but a kit: the parties themselves assemble which event is covered by what and in which order, and the system, as a party at the table, accepts the configuration or declines. States in increasing severity:
The debtor pays on time; holders present their notes only after the debtor's funds have arrived. UDEN notes are unfrozen from the reserve: the system receives its structuring fee, the liquidity source its fee for providing the credit line (but no yield from its use). The insurer, guarantor and other participants are paid per the contract.
Trigger: a holder presented a note before the debtor paid. Within the credit line, the liquidity source covers the early redemption with its own funds; when the debtor later pays, it recovers its money and earns interest for the use of the line. Everything else is as in the base trajectory.
Trigger: a delay, but payment is expected. A waiting window applies; throughout it the same liquidity source covers presentments. A full system exit is deliberately not triggered: a delay ≠ non-payment.
Trigger: the liquidity source failed to meet the call to cover early redemption of presented notes. The system redeems the presented notes for the holder anyway — from its own liquidity reserve, by replacing the source, or by another method written into the deal (recourse to the originator, an insurance event). Sanctions per the deal apply to the source that defaulted. Invisible to the holder.
Trigger: the debtor will not pay — insolvency, refusal, or delay beyond the waiting window. Two things execute:
Holder protection
Presented notes keep being redeemed as usual — funded by the liquidity source, recourse to the originator, or the system's own reserves.
UDEN recovery · the "exit option"
The system exercises the exit option pre-agreed in the deal, receiving the full amount matching the unredeemed notes plus compensation for losses — from a buy-back by the originator, insurance, the guarantor, collateral, or a combination.
Trigger: several events at once (for example, a debtor credit event together with a liquidity-source failure). The cascade must set priority: which layer fires first and who replaces whom. This too is part of the agreement at the table.
The system's minimum to take a deal
- The holder always receives full value, on time. Presentment has a contractual settlement window; failing to meet it = a default by UDEN itself toward the holder.
- Every loss-bearing branch has an assigned party that restores the system to balance. If there is none — the system does not sit down at that table.
Signing and substitution of the obligation
Once the configuration is accepted by all, including the system, the parties sign. The assignment of the claim against the debtor to UDEN and the substitution of that obligation with interest-free, perpetual notes are executed as a single package, simultaneously. This way UDEN is never, even for a moment, in debt to the originator in money — its obligation is born directly as notes.
Attestation
Before issuance, the set of deal documents is recorded in the protected journal of the private contour, and the note registry in its own, separate journal. They are attested separately on purpose: this prevents the private contour and the public registry from being linked to each other.
Payment for issuance and crediting
The issuance of notes must be paid for before they are credited.
The only crossing of the wall between the contours: what goes to the registry is only the obligation amount under an anonymized marker — with no parties, terms or economics.
On receiving this, the registry issues notes at full face value to the originator's account and immediately moves a portion into the reserve to pay the service, the liquidity source and the other participants. The registry sees a command "move this amount to that account," but does not know what stands behind it.
State at the end of issuance
In the private contour remains the signed deal with all its terms, the assignment, the novation and the cascade, plus the attested set of documents. In the public registry — notes at full face value in the originator's account, a portion of them in the reserve. The only link between the two is the anonymized marker; the registry still does not know the deal's economics.
From here the holder disposes of the notes inside the registry, between verified accounts: a note here is a record in the registry, not a bearer instrument that leaves the system.
▸Note 6 · Can a note be bought for money
Yes — this is what it is all built for: a note can be bought for money, because the buyer looks at UDEN, not at a specific debtor. But there is a line that cannot be crossed.
Dealer in backed paper
The buyer pays money and receives a note from a stock of notes already backed by some deal. Under every note is a real debt; the total of notes issued is no greater than the real backing. From outside it looks like "bought a note from UDEN," yet no paper was created out of thin air.
Minting for money
Fresh minting against money with no debt beneath it. By nature this is electronic money (like USDT) or the raising of repayable funds (like a deposit): a different company, a different licence, someone else's field — and with no advantage.
Dealing, by default, sits with a third-party market maker: this removes both the concentration of roles and the regulatory axis of market-making. A separate own entity for the dealing book is left as an open option.
Circulation of notes
After issuance the originator holds the whole volume of notes less what went to the reserve, and is free to do whatever it likes with the rest. But functionally there are exactly three actions — hold, transfer, redeem; everything else (payment, sale, pledge, splitting, exchange) is assembled from them.
The note rests in the holder's account. For UDEN, an unredeemed note is, in effect, perpetual interest-free funding.
Payment, sale, pledge, splitting — all of these are a transfer of the record between verified accounts. The note stays in the system, UDEN's liquidity is not spent, the network grows.
Presentment for redemption: the holder receives full face value at any moment, without discount and without a maturity. The only action that spends UDEN's liquidity and removes the note from circulation — here the cascade from the table fires.
The asymmetry is that redemption is the only operation that takes a note out of circulation and spends UDEN's liquidity; transfer and holding keep it working. So UDEN and the originator are the ones interested in circulation — yet the holder cannot be pushed by price: redemption gives full face value at any moment, there is no exit discount, and the cost of earliness before the debtor pays is borne by the originator. There is no lever to "make redemption more expensive" and that is right — on-time redemption must stay clean and rock-solid; the whole trust in the instrument rests on it.
Circulation wins not by price but by usefulness, acceptance and speed: a note can pay, be pledged or be split — saving the loop "redeem → get cash → spend again"; where counterparties accept the note, they are paid in it rather than redeem-and-transfer; a sale to a standing market maker is instant, while redemption goes through the settlement window (a few days). The flywheel is acceptance, and the originator — bearing the cost of early redemptions and recourse — has the strongest interest in spinning it: the more notes are in circulation, and the longer they stay there, the more reserve notes return to the originator when the debtor pays the debt.
A separate and perhaps the most valuable storyline is a bank or fund replacing a pool of scattered debts with UDEN notes. Here, on top of liquidity, comes potential relief of capital and reserves — but it hinges entirely on how the originator's recourse is worded.
▸Note 7 · Limits and cautions
- On-time redemption is inviolable. Drive circulation with the carrot — acceptance, pledge, speed — not by spoiling redemption. Make exit harder and you undermine trust in the instrument; then no one will want to hold or accept it.
- Par on demand at any time — this is exactly the redeem-on-demand function by which an electronic issuance is recognized. What sets us apart from it is the settlement window (this is presentment, not an instant counter-payment), the real debt under every note, and the walled garden.
- Yield on holding is a separate product, not interest on the note. Interest on the note itself = it stops being a clean interest-free instrument and drifts into another product. Yield can be provided through a partner bank vault account as an optional feature layered on top of the note, subject to further discussion.
- The discount is the market's, not UDEN's. Any discount lives in the secondary market between third parties; UDEN itself sells and redeems only at par.
▸Note 8 · Advantages of circulation
- Instant transfer = payment. You pay a counterparty by the very transfer of the note, without the step "redeem → get fiat → wire." A record update, instant and final, without banking rails and without draining UDEN's liquidity.
- Settlement efficiency and cross-border reach. A transfer is a record update: instant, final, without correspondents or delays. One note per currency, exchange between currencies via the market — cross-border settlement with a standard instrument, within the verified circle.
- Standardized collateral. A single obligor plus par on demand = predictable, easily valued paper with a low collateral haircut. You pledge and raise financing without selling or redeeming; the asset stays with you.
- Divisibility. A large debt becomes many small fungible notes: partial payment, partial sale, distribution to many; and reassembly. Divisibility plus standardization is the substrate of liquidity.
▸Note 9 · Replacing a pool of debts with notes — for banks and funds
Liquidity yes, relief no
The bank keeps all the loss risk — by the rules this is secured financing, not a sale. The loans stay on the balance sheet, and so do their risk weighting and reserves. Full recourse kills the bank case.
Credit risk transferred — relief possible
The originator's recourse covers only timing (a bridge over the line while the debtor is late), and the default loss is borne by the insurer / guarantor / UDEN. Then the bank transfers the credit risk and can write it and its reserves off, remaining a baseline backstop on timing. A variant is capped first-loss.
- Balance-sheet cleanup and the NPL ratio (true sale needed): offloading problem assets improves the observed ratio and frees the capital behind them.
- One standardized tradable risk (true sale needed): many scattered, hard-to-sell loans → one standard instrument that is easier to sell or pledge.
- Handling bad debt is not UDEN's job. UDEN does not collect: on a credit event it exercises the exit option and gets its due from the designated party. Collection and the trouble of the debt fall on the party that took the risk and granted that option (insurer, guarantor); if the risk has been shifted off the bank — the bank also sheds the collection.
The flip side
- Swapping many risks for one clean counterparty is itself concentration in UDEN. It runs into the large-exposure limit (on the order of 25% of Tier-1 capital per counterparty under CRR): the bank holds only so many UDEN notes, and UDEN's solvency becomes a single point of failure for it.
- The exact capital and reserve treatment depends on jurisdiction and structure (CRR / IFRS 9, a true-sale opinion, an assessment of the significance of risk transfer) and is confirmed by the bank's regulator and auditor.
Architecture
Deal privacy and a verifiable registry — at once
Two isolated contours
All deal economics, parties and documents live in private contour A. The public registry B knows only the obligation amount under an anonymized marker, hash(contract_id + secret) — no parties, terms or economics. The two cannot be linked.
Attestation without a trusted operator
Documents and registry are attested separately: each is an append-only journal where no record can be altered after the fact. Several times a day a snapshot is published to Bitcoin via OpenTimestamps — independent proof of integrity. It is not a blockchain.
Issuer transparency
The portfolio's state is visible — and cannot be edited after the fact
The issuer publishes anonymized, aggregated portfolio statistics per currency — without disclosing participants or the terms of individual deals. The statistics are computed in private contour A and leave only as an aggregate; the public registry B still holds only the obligation amount and flags. This lets a holder or buyer see the portfolio's health and its coverage without access to anyone's deals. It is built as voluntary issuer covenants — modelled on bond-indenture covenants, not as a custodial duty: discipline becomes contractual, without a financial-intermediary licence.
Volume & tenor
Total face value outstanding and the face-weighted average residual term. A clean aggregate, with no per-deal exposure.
Delinquency
The share of the pool by state: performing / technical default within the cure window / escalated to a credit event — percentages by bucket only, on the canonical gradation.
Concentration
The largest exposure, the top-N share, sector and geographic distribution, and the HHI as a single number — addressing concentration risk. Categories below a minimum size are suppressed (anti-reidentification).
Liquidity coverage
How much liquidity covers the issue right now: the cash reserve, committed facilities, and risk-adjusted receivables. A coverage ratio with a target minimum (as a rule ≥ 100% with a buffer); cash and facilities are independently confirmed.
The very fact of publishing a snapshot (for example, daily) is anchored in the append-only journal via OpenTimestamps — the same attestation as for deal documents and the registry. Disclosure becomes verifiable rather than taken on word: the data cannot be edited after the fact, and independent confirmations of the reserve and facilities are published alongside the statistics, also timestamped.
The covenants are written into the obligation terms and the public policy — a breach becomes a defined contractual event the holder can invoke: a shortfall in the reserve or coverage is treated as a technical default with a cure window, and then up the canonical ladder. From banking and fund regimes UDEN takes only the signaling minimum — reserve, coverage, concentration limits, restricted payments, a ban on speculation, disclosure — without becoming a regulated intermediary. Internal underwriting and collateral scores are not published to the holder.
Secondary market
Homogeneous paper trades instantly
A single obligor and a single standard make the notes homogeneous — fungible within a currency and comparable across currencies. Homogeneity is exactly what an organized secondary market needs, so a liquid market forms on top of UDEN's rails: a note trades instantly — for money, or against a note in another currency.
Sell for cash
A holder who needs cash faster than the redemption settlement window sells to a market maker near par, less a small spread. Redemption at par is always available as a price floor.
Buy for cash
A buyer acquires standard, backed paper for money — looking at the single obligor and the standard, not at a specific debtor. Under every note is a real debt.
Swap currency
A note in one currency exchanges instantly for a note in another at the market rate — cross-border settlement with a standard instrument, within the verified circle.
Instant exit and currency exchange make the note behave like liquid, near-cash standard paper — and that spins up acceptance: paper is taken more readily when it can be turned into money or another currency within seconds.
Who it is for
The three sides that gain
Originator
Factors, suppliers, lenders
An illiquid claim instantly becomes a standardized, full-face asset — to pay with or pledge, without waiting for the debtor. Save up to 80% compared to traditional lending.
Holder
Recipients and investors
Predictable paper with a single obligor and redemption at par on demand; a practical settlement instrument and low-haircut collateral, independent of any specific debtor’s credit risk. Potential additional yield through deposit programs offered by partner banks while retaining exposure to the note.
Bank / fund
Balance sheets and portfolios
A pool of scattered debts becomes one standardized tradable risk; with the right recourse structure, capital and reserve relief is possible (true sale). Detail and limits in Note 9 of the lifecycle.
Why it compounds
A standard that strengthens with every participant
UDEN is not a one-off service but a standard and a set of rules for circulating debt. The more participants accept the note, the more useful it becomes: easier to transfer, pledge and accept in payment. That flywheel is the asset.
Risk abstraction
A single obligor instead of a thousand debtors — what makes debt fungible.
Standard & discipline
Common rules, source selection and the cascade — trusted in place of vetting each debt.
Provable integrity
Two isolated contours and attestation in Bitcoin, independent of UDEN.
The holder invariant
The par-payment guarantee — the foundation of trust on which acceptance rests.
Contact
Get in touch with UDEN
Reach us
uden.cc