Tri-Party Collateral Setup Using a Qualified Custodian

Borrowers, Lenders, Arkis, and BitGo interact under a secured credit arrangement — creating a tri-party setup where assets are held in custody, Arkis enforces security over the collateral, and Lenders gain enforceable collateral rights upon default.

This setup balances Borrower control in normal conditions with enforceability for Lenders in default events, while keeping collateral bankruptcy-remote and compliant with institutional requirements.

Overview

In this model:

  • Borrower (Pledgor): Holds assets in a segregated BitGo custody account.

  • Arkis (Secured Party): Provides credit and margining, and enforces security over the pledged collateral.

  • BitGo (Custodian): Acts as a neutral qualified custodian, executing instructions strictly in line with the Account Control Agreement (ACA) and Master Loan Agreement (MLA).

  • Lenders: Extend capital through the MLA and gain collateral backing.

Core Agreements

Two key contracts define responsibilities:

  • Account Control Agreement (ACA): Establishes custody mechanics between Borrower, Arkis, and BitGo. It specifies account setup, control conditions, and instruction execution.

  • Master Loan Agreement (MLA): Governs credit terms, collateral approval logic, margin requirements, and default triggers.

Control Mechanics

  • Normal Operations

    • Borrower retains control of assets.

    • Any Arkis action (e.g., transfer, liquidation) requires Borrower approval under the MLA.

    • BitGo remains neutral.

  • Default Scenario

    • Arkis issues a Notice of Exclusive Control.

    • BitGo then executes instructions solely from Arkis until obligations are resolved.

  • Protections

    • Assets remain bankruptcy-remote at BitGo.

    • Safe-harbor provisions and UCC Article 8 protections apply.

Collateral Eligibility

Arkis combines BitGo’s custody coverage with its own risk framework to define the eligible collateral universe.

BitGo Supported Assets

  • 1,600+ assets across 44+ blockchains.

  • Includes native coins and tokens on Ethereum, Solana, Bitcoin, Cardano, Polygon, Avalanche, XRP, Tezos, Sui, Cosmos, and more.

  • Full list →

Arkis Whitelisted Assets

Arkis maintains a whitelist based on liquidity, price reliability, and liquidation safety.

  • Includes stablecoins, Liquid Staking Tokens, BTC-related tokens, yield-bearing tokens, and native tokens

  • Full list →

Strategic Value

  • Borrowers retain flexibility during normal operations; lenders gain enforceable collateral rights upon default.

  • Supports blue-chip coins, LSTs, LPs, and yield-bearing assets under a unified custody structure.

  • Qualified custody and continuous risk monitoring meet institutional compliance expectations.

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