claude-daml — Tokenized Asset-Based Lending on Canton Network

Proof-of-concept Daml smart contract suite for tokenizing hard-asset collateral loans and distributing fractional yield to accredited investors via a Reg D secondary market on Canton Network.

1. Business Context

The Problem: Illiquid Capital Trapped in Hard-Asset Loans

Traditional Asset-Based Lending (ABL) allows businesses to unlock capital by pledging hard assets — commercial real estate, manufacturing equipment, fleet vehicles, agricultural assets — as collateral. The lender advances capital (typically 50–80% of appraised collateral value), charges interest (typically 8–12% annualized), and holds a senior secured lien until repayment.

The bottleneck: Once a lender funds an ABL loan, that capital is locked for the duration of the loan term. To grow their book, the lender must either:

Raise additional equity / debt capital (slow, expensive), or
Sell participations bilaterally via syndication (manual, relationship-dependent, weeks to close)

This friction caps the lender's capital velocity — the speed at which deployed capital can be recycled into new deals.

The Solution: Tokenized ABL on a Regulated Secondary Market

This project demonstrates how a FinTech ABL lender can:

Originate a collateralized business loan secured by hard assets
Tokenize the loan into fractional digital securities on Canton Network within hours of closing
Offer fractional interests to accredited investors under SEC Reg D Rule 506(c) via a compliant on-chain secondary market
Recycle recovered capital immediately into the next loan — dramatically increasing capital turn

The result is an institutional-grade, privacy-preserving, compliance-enforced secondary market that transforms an illiquid ABL loan book into a continuously liquid asset class — inspired by the modular contract architecture pioneered by Franklin Templeton's BENJI platform on Canton Network.

2. Capital Flow & Economics

┌─────────────────────────────────────────────────────────────────────┐
│                     CAPITAL FLOW DIAGRAM                            │
│                                                                     │
│  BUSINESS BORROWER                                                  │
│  ┌──────────────────┐                                               │
│  │ Hard Assets      │ ──── pledges collateral ────►                 │
│  │ • Real Estate    │                                               │
│  │ • Equipment      │ ◄─── receives loan capital ───               │
│  │ • Fleet / Agri   │                                               │
│  └──────────────────┘                                               │
│           │                                                         │
│           │  10% annualized interest                                │
│           ▼                                                         │
│  FINTECH ABL LENDER (Originator + Servicer)                        │
│  ┌─────────────────────────────────────────────────────┐           │
│  │  1. Underwrite loan (LTV 50–75%)                    │           │
│  │  2. Register collateral on-chain (CollateralRegistry│           │
│  │  3. Mint LoanTokens (fractional, Reg D)             │           │
│  │  4. List on Canton secondary market                 │           │
│  │  5. Retain 7% spread / servicing fee                │           │
│  └─────────────────────────────────────────────────────┘           │
│           │                                                         │
│           │  3% yield paid to investors                             │
│           ▼                                                         │
│  ACCREDITED INVESTORS (Reg D 506(c))                               │
│  ┌──────────────────┐                                               │
│  │ • Family Offices │  ◄── purchase fractional LoanTokens          │
│  │ • RIAs           │                                               │
│  │ • Hedge Funds    │  ◄── receive proportional yield              │
│  │ • HNW Individuals│       distributed on-chain                   │
│  └──────────────────┘                                               │
│                                                                     │
│  ECONOMICS SUMMARY                                                  │
│  ─────────────────                                                  │
│  Borrower pays:            10.0% annualized interest                │
│  Investor receives:         3.0% yield (distributed on-chain)      │
│  Lender retains:            7.0% spread + origination fees         │
│  Capital recycled:         Immediately upon token sale              │
│  Capital velocity gain:    10–15x vs. traditional hold-to-maturity  │
└─────────────────────────────────────────────────────────────────────┘

Capital Velocity — The Core Value Proposition

Metric	Traditional ABL (Hold)	Tokenized ABL (This System)
Capital recycled after funding	12–36 months	Hours to days
Deals per $10M capital / year	1–2	15–25
Secondary market participants	Bilateral syndication	Open Reg D marketplace
Time to investor settlement	Weeks	Minutes (Canton atomic DVP)
Compliance enforcement	Manual	Protocol-level (Daml)

3. Why Canton Network & Daml

Canton Network

Canton is the only public, permissionless blockchain purpose-built for regulated institutional finance. It uniquely combines:

Privacy by default — counterparties see only what they need to see (no public mempool leakage)
Atomic DVP — delivery vs. payment settles simultaneously, eliminating counterparty risk
Composability — smart contracts interoperate across participants without a central coordinator
Regulatory alignment — purpose-built for permissioned, KYC'd participants

Canton processes over $6 trillion in tokenized assets and $280 billion in daily repo transactions, with participants including HSBC, BNP Paribas, JPMorgan Chase, Goldman Sachs, and Citadel Securities.

Daml — The Smart Contract Language

Daml (Digital Asset Modeling Language) is the functional, strongly-typed smart contract language that powers Canton. It enforces:

Authorization — every action requires explicit party consent (signatory, controller)
Privacy — contract payloads are only visible to declared observer parties
Correctness — the compiler rejects unsafe code before deployment
Auditability — every state transition is a cryptographically signed, immutable ledger event

Inspired by BENJI (Franklin Templeton)

Franklin Templeton's BENJI platform — the first SEC-registered fund to use blockchain as the official system of record — expanded to Canton Network in November 2025. BENJI pioneered the modular, compliance-first Daml contract pattern this project adopts:

Compliance enforcement at the protocol level (not application level)
Transfer agent registry as the legally binding source of ownership truth
KYC/AML gating embedded in every token transfer choice
Yield distribution calculated and settled on-chain, to the second

This project applies that same architecture to the ABL loan tokenization use case.

4. BENJI-Inspired Modular Architecture

The contract system is organized as a hierarchy of composable modules, each responsible for exactly one domain concern. Higher-level modules call lower-level ones; no module reaches sideways into a peer's internals.

┌──────────────────────────────────────────────────────────────────────────┐
│                      MODULE DEPENDENCY HIERARCHY                          │
│                                                                           │
│  ┌──────────────────────────────────────────────────────────────────┐    │
│  │                 SecondaryMarket.daml  (Layer 4)                  │    │
│  │           Listing · Matching · Settlement · Reporting             │    │
│  └──────────────────────────────┬───────────────────────────────────┘    │
│                                 │ depends on                              │
│  ┌───────────────────────────┐  │  ┌────────────────────────────────┐    │
│  │  YieldDistribution.daml  │  │  │    LoanToken.daml  (Layer 3)  │    │
│  │  (Layer 3.5)             │◄─┴─►│  Issuance · Transfer · Yield  │    │
│  │  Yield records · Pending │     │  Redemption · AccrueYield      │    │
│  │  → Paid · audit trail    │     └──────────┬──────────┬──────────┘    │
│  └───────────────────────────┘               │          │                │
│                                   depends on │          │ depends on     │
│  ┌──────────────────────────┐               │  ┌───────▼─────────────┐  │
│  │  CovenantAlert.daml      │               │  │  InvestorRegistry   │  │
│  │  (Layer 2.5)             │               │  │  .daml  (Layer 2)   │  │
│  │  Breach notice · Cure    │  ┌────────────▼─┐│  KYC · Reg D ·     │  │
│  │  Resolve / Escalate      │  │LoanOrigination││  Accreditation     │  │
│  └──────────────────────────┘  │.daml (Layer 2)│└────────────────────┘  │
│                                │Application ·  │                         │
│                                │Commitment ·   │                         │
│                                │ActiveLoan·LTV │                         │
│                                └───────┬───────┘                         │
│                                        │ depends on                      │
│  ┌─────────────────────────────────────▼───────────────────────────┐    │
│  │                 CollateralRegistry.daml  (Layer 1)               │    │
│  │           Asset registration · Appraisal · LTV · Lien            │    │
│  └──────────────────────────────────────────────────────────────────┘    │
│                                                                           │
│  ┌──────────────────────────────────────────────────────────────────┐    │
│  │                  Compliance.daml  (Cross-cutting)                 │    │
│  │         Party whitelist · Reg D attestation · AML screening       │    │
│  └──────────────────────────────────────────────────────────────────┘    │
└──────────────────────────────────────────────────────────────────────────┘

5. Smart Contract Module Reference

`Types.daml` — Shared Foundation

Responsibility: Defines all shared types, enums, and pure utility functions. Has no dependencies on other project modules — everything else imports from here.

Key types: CollateralAssetType, AssetStatus, LoanStatus, PaymentFrequency, KYCStatus, AccreditationTier, TokenStatus, ListingStatus, YieldStatus, CovenantAlertStatus, LoanTerms, CollateralInfo, TokenTranche

Key utilities: calculateDailyInterest, computeLTV, isValidRate, isValidLTV, loanDurationDays, proRataShare

`Compliance.daml` — Cross-Cutting Compliance Layer

Responsibility: Maintains the canonical whitelist of KYC/AML-cleared parties and Reg D accreditation status. Every transfer choice in every other module fetches from here before proceeding.

Key templates:

ParticipantKYC — operator-controlled KYC record per party; lifecycle: KYCPending → KYCApproved ↔ KYCSuspended; RevokeKYC archives
InvestorAccreditation — Reg D 506(c) attestation with expiry; operator-issued per investor

Key choices on ParticipantKYC:

ApproveKYC — pending → approved
SuspendKYC — approved → suspended
ReinstatKYC — suspended → approved
RevokeKYC — permanently archives the record

Key choices on InvestorAccreditation:

RenewAccreditation — extend expiry (must be forward-only)
RevokeAccreditation — archives the record

`CollateralRegistry.daml` — Layer 1: Hard Asset Registration

Responsibility: Creates and maintains the on-chain record of pledged hard assets, their appraised values, and the senior lien held by the lender. Operator acts as the title registry; lender controls lien lifecycle.

Key templates:

CollateralAsset — a registered hard asset (type, description, appraisal, lien status)

Key choices:

UpdateAppraisal (operator) — post a new certified valuation; asset must be Registered or Encumbered
PerfectLien (lender) — Registered → Encumbered; fetches borrower ParticipantKYC on-chain as a compliance gate
ReleaseLien (lender) — Encumbered → Released on full repayment
LiquidateAsset (lender) — Encumbered → Liquidated on default; records proceeds
nonconsuming GetCurrentLTV (lender) — compute current loan-to-value ratio

`LoanOrigination.daml` — Layer 2: ABL Loan Lifecycle

Responsibility: Models the full lifecycle of an asset-based loan from application through funding, servicing, and closure.

Key templates:

LoanApplication — borrower-initiated loan request
LoanCommitment — lender-issued term sheet; lender is signatory, enabling combined authority on acceptance
ActiveLoan — funded bilateral loan (signatory: lender + borrower)

Key choices:

IssueCommitment (lender on LoanApplication) — validates terms, creates LoanCommitment
AcceptCommitment (borrower on LoanCommitment) — runs with lender+borrower authority; calls PerfectLien atomically; creates ActiveLoan; returns (ContractId ActiveLoan, ContractId CollateralAsset)
RejectApplication / WithdrawApplication / DeclineCommitment / RevokeCommitment — lifecycle exits
RecordPayment (lender on ActiveLoan) — partial payment; balance must stay positive
RecordFullRepayment (lender) — final payment must equal outstanding; calls ReleaseLien
DeclareDefault (lender) — calls LiquidateAsset on collateral
nonconsuming GetLTVStatus (lender) — returns (currentLTV, isWithinCovenant)

`CovenantAlert.daml` — Layer 2.5: LTV Covenant Enforcement

Responsibility: Provides the on-chain enforcement layer for LTV covenant breaches detected by GetLTVStatus. Issues formal breach notices with cure deadlines, tracks borrower acknowledgment, and records resolution or escalation decisions. Depends only on Types.

Key templates:

CovenantAlert — lender-issued formal breach notice (signatory: lender, observer: operator + borrower)

Key choices:

AcknowledgeAlert (borrower) — AlertIssued → AlertAcknowledged; confirms receipt of the notice
ResolveAlert (lender) — archives the alert when the breach is cured; valid in either status
EscalateToDefault (lender) — archives the alert when proceeding to formal default; lender then separately calls DeclareDefault on ActiveLoan
WithdrawAlert (lender) — archives an AlertIssued alert issued in error (e.g., stale appraisal)

Design note: CovenantAlert does not directly call DeclareDefault — separation of steps preserves a clean audit trail for the notice and the default decision independently.

`InvestorRegistry.daml` — Layer 2: Accredited Investor Onboarding

Responsibility: Maintains the register of verified accredited investors and enforces subscription limits. Works in tandem with Compliance.daml.

Key templates:

OnboardingRequest — investor-initiated two-party onboarding proposal
InvestorProfile — operator-managed profile tracking subscription cap and cumulative investment

Key choices on OnboardingRequest:

ApproveOnboarding (operator) — validates InvestorAccreditation ownership; creates InvestorProfile
RejectOnboarding / WithdrawRequest — lifecycle exits

Key choices on InvestorProfile:

RecordInvestment (operator) — increases currentInvestment; guards active status and capacity
RecordRedemption (operator) — decreases currentInvestment; always permitted (investor can exit)
UpdateInvestmentLimit (operator) — adjust cap; cannot go below current investment
DeactivateProfile / ReactivateProfile (operator) — compliance hold toggle
nonconsuming VerifyEligibility (operator) — returns Bool; checks active + accreditation not expired + capacity
nonconsuming GetAvailableCapacity (operator) — returns maxLimit - currentInvestment

`LoanToken.daml` — Layer 3: Fractional Token Issuance & Yield

Responsibility: Mints fractional digital securities representing beneficial ownership in an ActiveLoan. Enforces compliance on every transfer. Computes yield on-chain.

Key templates:

TokenIssuance — lender+operator authority record for a token tranche; nonconsuming MintAllocation mints per-investor tokens
IssuedToken — a fractional token held by an accredited investor

Key choices on IssuedToken:

Transfer (lender) — compliance-gated: fetches receiver ParticipantKYC (must be KYCApproved) and InvestorProfile (must be active); partial transfers produce a residual token; returns (ContractId IssuedToken, Optional (ContractId IssuedToken))
FreezeToken / UnfreezeToken (lender) — compliance hold; frozen tokens block transfer and redemption
nonconsuming AccrueYield (lender) — returns USD yield for a date range via simple interest
RedeemToken (lender) — Active only; computes pro-rata principal proceeds; archives token

Compliance gate (enforced in Transfer and MintAllocation): Both choices fetch the receiver's ParticipantKYC and InvestorProfile on-chain and abort if either check fails — identical to how BENJI enforces compliance at the protocol level.

`YieldDistribution.daml` — Layer 3.5: Yield Payment Audit Trail

Responsibility: Provides the immutable per-investor, per-period on-ledger record of yield payments. IssuedToken.AccrueYield computes yield but leaves no persisted record; YieldDistribution closes that loop and is the on-chain equivalent of a 1099-INT. Depends only on Types.

Key templates:

YieldDistribution — lender-issued yield record; fields: token/loan reference, accrual period, token snapshot, yield rate, computed USD yield, and YieldStatus

Key choices:

MarkPaid (lender) — YieldPending → YieldPaid; cash has been delivered off-chain; creates a new contract with updated status
VoidDistribution (lender) — archives a YieldPending record on calculation error; lender re-issues a corrected distribution
PurgeRecord (operator) — archives a YieldPaid record after the regulatory retention period

`SecondaryMarket.daml` — Layer 4: Reg D Marketplace

Responsibility: Operates the on-chain secondary market where accredited investors list and settle fractional loan tokens via atomic DVP on Canton.

Key templates:

TokenListing — seller's offer: token amount, ask price, expiry (signatory: seller + lender)
TradeRecord — immutable audit trail of a settled trade (signatory: lender, observer: operator + seller + buyer)

Key choices on TokenListing:

MatchListing (lender) — atomic DVP: compliance gate (buyer KYC + profile) → IssuedToken.Transfer → creates TradeRecord; returns (ContractId TradeRecord, ContractId IssuedToken, Optional (ContractId IssuedToken))
CancelListing (seller) — withdraw before match
RevokeListing (lender) — compliance-driven cancellation
ExpireListing (lender) — clear stale listings

Key choices on TradeRecord:

PurgeRecord (operator) — archive after regulatory retention period

6. End-to-End Workflow

Step 1 — COLLATERAL REGISTRATION
  Operator creates CollateralAsset with initial appraisal
  Operator calls UpdateAppraisal → posts certified valuation (status: AssetRegistered)
  [Lender will call PerfectLien in Step 2 as part of AcceptCommitment]

Step 2 — LOAN ORIGINATION
  Borrower calls createCmd LoanApplication with proposed terms + collateral ref
  Lender calls IssueCommitment (on LoanApplication) → LoanCommitment created
  Borrower calls AcceptCommitment (on LoanCommitment) with collateralCid + borrowerKycId
    → atomically calls PerfectLien (CollateralAsset: Registered → Encumbered)
    → creates ActiveLoan (signatory: lender + borrower)
    → returns (ContractId ActiveLoan, ContractId CollateralAsset)
  Capital disbursed off-chain; lender begins servicing

Step 3 — INVESTOR ONBOARDING (one-time per investor, can run in parallel)
  Operator creates ParticipantKYC for investor → calls ApproveKYC
  Operator creates InvestorAccreditation (Reg D 506(c)) with expiry date
  Investor creates OnboardingRequest
  Operator calls ApproveOnboarding (on OnboardingRequest) → InvestorProfile created
  Operator calls RecordInvestment (on InvestorProfile) as tokens are purchased

Step 4 — TOKENIZATION
  Lender + Operator create TokenIssuance record against ActiveLoan
  Lender calls MintAllocation (nonconsuming, per investor) → IssuedToken created per allocation
  Seller (token holder) + Lender co-sign createCmd TokenListing → listing posted on secondary market

Step 5 — SECONDARY MARKET TRADING (Reg D DVP)
  Lender calls MatchListing (on TokenListing) with buyer + buyerKycId + buyerProfileId
    → compliance gate: fetches + asserts buyer ParticipantKYC (must be KYCApproved)
    → compliance gate: fetches + asserts buyer InvestorProfile (must be active)
    → exercises IssuedToken.Transfer → buyer receives token; seller retains residual (if partial)
    → creates TradeRecord (immutable audit trail)
    → returns (ContractId TradeRecord, ContractId IssuedToken, Optional (ContractId IssuedToken))
  Lender's capital is recycled off-chain → funds next ABL loan

Step 6 — ONGOING SERVICING & YIELD
  Borrower makes periodic payments → Lender calls RecordPayment (on ActiveLoan)
  Lender calls AccrueYield (nonconsuming, on IssuedToken) per investor per period
    → returns USD yield = investorYield × tokenFaceValue × tokenAmount × (days/365)
  Lender creates YieldDistribution (YieldPending) for each investor → on-chain yield record
  Lender delivers cash off-chain → calls MarkPaid → YieldDistribution status = YieldPaid
  Lender calls nonconsuming GetLTVStatus → monitors covenant ratio
  If LTV > covenantMaxLTV → Lender issues CovenantAlert (AlertIssued) with cureDeadline
  Borrower calls AcknowledgeAlert → AlertAcknowledged
  Breach cured → Lender calls ResolveAlert → alert archived, loan continues
  Breach not cured → Lender calls EscalateToDefault → then DeclareDefault on ActiveLoan

Step 7 — LOAN MATURITY / REPAYMENT
  Borrower makes final payment → Lender calls RecordFullRepayment (on ActiveLoan)
    → exact balance match required
    → atomically calls ReleaseLien → CollateralAsset: Encumbered → Released
  Lender calls RedeemToken (on each IssuedToken) per investor
    → Active tokens only; computes pro-rata principal proceeds
    → archives IssuedToken (token lifecycle complete)
  Collateral returned to borrower off-chain

7. Regulatory Framework

SEC Regulation D — Rule 506(c)

All secondary market offerings under this system are structured as Reg D 506(c) private placements:

Requirement	Implementation
Accredited investors only	`MatchListing` fetches buyer's `InvestorProfile` (must be active); `MintAllocation` fetches receiver's `InvestorProfile`
General solicitation allowed	Public `TokenListing` on secondary market is permitted under 506(c)
Issuer verification of accreditation	`InvestorAccreditation` record signed on-chain by operator; checked in `ApproveOnboarding`
Form D filing within 15 days	Off-chain compliance obligation of the issuer
No resale to non-accredited parties	`Transfer` on `IssuedToken` fetches receiver `ParticipantKYC` (must be `KYCApproved`) and `InvestorProfile` (must be active); aborts otherwise

KYC / AML

Every party (borrower, lender, investor) must hold an active ParticipantKYC record in Compliance.daml
KYC lifecycle: KYCPending → ApproveKYC → KYCApproved ↔ SuspendKYC ↔ KYCSuspended; RevokeKYC permanently archives the record
Sanctions screening updates propagate via SuspendKYC (reversible) or RevokeKYC (permanent archive)
All token transfers are blocked for suspended or revoked parties — enforced as a hard abort in IssuedToken.Transfer and SecondaryMarket.MatchListing

Collateral Lien Perfection

CollateralAsset (in CollateralRegistry.daml) is the on-chain record of the lender's security interest; supplements (does not replace) UCC-1 filings
PerfectLien transitions the asset from AssetRegistered → AssetEncumbered, associating it with a LoanId
LTV covenant monitoring via nonconsuming GetCurrentLTV (on CollateralAsset) and nonconsuming GetLTVStatus (on ActiveLoan) — enables automated margin call triggers

8. Getting Started

Prerequisites

# Install the Daml SDK
curl -sSL https://get.daml.com/ | sh

# Verify
daml version

Build

git clone https://github.com/hyfisamurai/claude-daml.git
cd claude-daml

# Compile all modules
daml build

Run Tests

# Full test suite
daml test

# Individual module tests
daml test --files daml/Compliance.daml
daml test --files daml/CollateralRegistry.daml
daml test --files daml/LoanOrigination.daml
daml test --files daml/InvestorRegistry.daml
daml test --files daml/LoanToken.daml
daml test --files daml/YieldDistribution.daml
daml test --files daml/SecondaryMarket.daml

Local Sandbox

# Start a local ledger
daml sandbox --dar .daml/dist/claude-daml-*.dar

# Open the ledger explorer (separate terminal)
daml navigator server localhost 6865

9. Project Structure

claude-daml/
├── CLAUDE.md                       # AI assistant guide (coding conventions, workflow)
├── README.md                       # This file
├── LICENSE                         # MIT
├── daml.yaml                       # Daml SDK manifest (sdk-version: 2.9.0)
│
└── daml/                           # All source and test modules (co-located)
    │
    │   ── Production modules ──────────────────────────────────────────────
    ├── Types.daml                  # Shared types, enums, and pure utilities
    ├── Compliance.daml             # Cross-cutting: KYC/AML whitelist, Reg D
    ├── CollateralRegistry.daml     # Layer 1: Hard asset registration & liens
    ├── LoanOrigination.daml        # Layer 2: ABL loan lifecycle
    ├── InvestorRegistry.daml       # Layer 2: Accredited investor onboarding
    ├── LoanToken.daml              # Layer 3: Fractional token issuance & yield
    ├── YieldDistribution.daml      # Layer 3.5: Yield payment audit trail
    ├── CovenantAlert.daml          # Layer 2.5: LTV covenant breach & cure workflow
    ├── SecondaryMarket.daml        # Layer 4: Reg D marketplace (listing, DVP)
    │
    │   ── Test modules (Daml Script) ──────────────────────────────────────
    ├── TypesTest.daml              # 10 tests — utility function correctness
    ├── ComplianceTest.daml         # 14 tests — KYC lifecycle, Reg D, guards
    ├── CollateralRegistryTest.daml # 20 tests — registration, appraisal, liens
    ├── LoanOriginationTest.daml    # 22 tests — loan pipeline, LTV, defaults
    ├── InvestorRegistryTest.daml   # 24 tests — onboarding, limits, eligibility
    ├── LoanTokenTest.daml          # 24 tests — issuance, transfer, yield, freeze
    ├── YieldDistributionTest.daml  # 17 tests — yield lifecycle, guards, ensures
    ├── CovenantAlertTest.daml      # 17 tests — breach lifecycle, guards, ensures
    ├── SecondaryMarketTest.daml    # 22 tests — DVP, compliance gate, audit trail
    └── E2ETest.daml                #  1 test  — full lifecycle integration (all 8 modules)

10. Roadmap

Phase	Milestone	Status	Tests
0	Repository setup, `CLAUDE.md`, `README.md`, `daml.yaml`	✅ Complete	—
1	`Types.daml` — shared enums, record types, pure utility functions	✅ Complete	10
2	`Compliance.daml` — `ParticipantKYC` lifecycle, `InvestorAccreditation` Reg D	✅ Complete	14
3	`CollateralRegistry.daml` — `CollateralAsset` registration, appraisal, lien perfection	✅ Complete	20
4	`LoanOrigination.daml` — `LoanApplication` → `LoanCommitment` → `ActiveLoan` pipeline	✅ Complete	22
5	`InvestorRegistry.daml` — `OnboardingRequest` + `InvestorProfile` subscription tracking	✅ Complete	24
6	`LoanToken.daml` — `IssuedToken` compliance-gated transfer, yield accrual, redemption	✅ Complete	24
7	`SecondaryMarket.daml` — `TokenListing` + `TradeRecord` atomic DVP settlement	✅ Complete	22
7a	`YieldDistribution.daml` — per-investor yield payment records; `YieldPending` → `YieldPaid`	✅ Complete	17
7b	`CovenantAlert.daml` — LTV breach notice, cure period, resolve/escalate workflow	✅ Complete	17
7c	`E2ETest.daml` — single-script full lifecycle integration test (all 9 modules)	✅ Complete	1
8	Canton Network sandbox deployment & integration smoke test	Planned	—
9	TypeScript codegen (`daml codegen js`) + React reference UI	Planned	—
10	Reg D compliance audit & legal review	Planned	—

171 Daml Script tests pass across all nine source modules (phases 1–7b), including one end-to-end integration test spanning the full deal lifecycle.

Completed architecture at a glance

SecondaryMarket      TokenListing · TradeRecord · DVP settlement
      ▲
LoanToken            IssuedToken · TokenIssuance · yield · freeze · redeem
      ▲                    ▲
      │          YieldDistribution  YieldPending → YieldPaid · audit trail
      │
LoanOrigination      LoanApplication · LoanCommitment · ActiveLoan
CovenantAlert        AlertIssued → AlertAcknowledged · Resolve / Escalate
InvestorRegistry     OnboardingRequest · InvestorProfile
      ▲                    ▲
CollateralRegistry   CollateralAsset · appraisal · lien lifecycle
      ▲
Compliance           ParticipantKYC · InvestorAccreditation
      ▲
Types                Enums · record types · pure utilities

11. License

See LICENSE for full terms.

References & Further Reading

Franklin Templeton BENJI Platform — Tokenized fund architecture this project draws inspiration from
BENJI Expands to Canton Network (CoinDesk) — Nov 2025 expansion announcement
Canton Network — Institutional DLT infrastructure
Daml Documentation — Smart contract language reference
Daml Standard Library
OCC Asset-Based Lending Handbook — Regulatory framework for ABL
CAIA: Asset-Based Lending Coming of Age — Market context
SEC Regulation D Overview — Rule 506(c) accredited investor framework
Claude Code Documentation

Name		Name	Last commit message	Last commit date
Latest commit History 33 Commits
daml		daml
scripts		scripts
.gitignore		.gitignore
CLAUDE.md		CLAUDE.md
LICENSE		LICENSE
README.md		README.md
daml.yaml		daml.yaml

Folders and files

Latest commit

History

Repository files navigation

claude-daml — Tokenized Asset-Based Lending on Canton Network

Table of Contents

1. Business Context

The Problem: Illiquid Capital Trapped in Hard-Asset Loans

The Solution: Tokenized ABL on a Regulated Secondary Market

2. Capital Flow & Economics

Capital Velocity — The Core Value Proposition

3. Why Canton Network & Daml

Canton Network

Daml — The Smart Contract Language

Inspired by BENJI (Franklin Templeton)

4. BENJI-Inspired Modular Architecture

5. Smart Contract Module Reference

Types.daml — Shared Foundation

Compliance.daml — Cross-Cutting Compliance Layer

CollateralRegistry.daml — Layer 1: Hard Asset Registration

LoanOrigination.daml — Layer 2: ABL Loan Lifecycle

CovenantAlert.daml — Layer 2.5: LTV Covenant Enforcement

InvestorRegistry.daml — Layer 2: Accredited Investor Onboarding

LoanToken.daml — Layer 3: Fractional Token Issuance & Yield

YieldDistribution.daml — Layer 3.5: Yield Payment Audit Trail

SecondaryMarket.daml — Layer 4: Reg D Marketplace

6. End-to-End Workflow

7. Regulatory Framework

SEC Regulation D — Rule 506(c)

KYC / AML

Collateral Lien Perfection

8. Getting Started

Prerequisites

Build

Run Tests

Local Sandbox

9. Project Structure

10. Roadmap

Completed architecture at a glance

11. License

References & Further Reading

About

Resources

License

Uh oh!

Stars

Watchers

Forks

Releases

Packages 0

Uh oh!

Contributors

Uh oh!

Languages

`Types.daml` — Shared Foundation

`Compliance.daml` — Cross-Cutting Compliance Layer

`CollateralRegistry.daml` — Layer 1: Hard Asset Registration

`LoanOrigination.daml` — Layer 2: ABL Loan Lifecycle

`CovenantAlert.daml` — Layer 2.5: LTV Covenant Enforcement

`InvestorRegistry.daml` — Layer 2: Accredited Investor Onboarding

`LoanToken.daml` — Layer 3: Fractional Token Issuance & Yield

`YieldDistribution.daml` — Layer 3.5: Yield Payment Audit Trail

`SecondaryMarket.daml` — Layer 4: Reg D Marketplace

Packages