Credora, the San Francisco-headquartered lending and credit intelligence infrastructure provider, has been granted a Class M digital asset business licence by the Bermuda Monetary Authority.

The company said the licence provided the optimal environment for new and innovative models seeking regulatory guidance.

Through the licence, Credora said, it planned to serve a larger global customer base and extend the company’s regulated presence, which includes existing subsidiary MSB (money services business) registrations in Canada.

In the coming weeks, the company said, it would offer and support collateralised agency lending via the Instant Lend feature.

It added that all Instant Lend collateralised lending activity would transact through the newly licensed Bermudian subsidiary, Intermediary Services Ltd.

Amid the failures of the principal lending market last year, Credora said, it built a platform on top of a fundamentally different model, with transparency and risk management at the forefront.

Credora said its Instant Lend feature operated an agency lending model, enabling a marketplace which connected lenders and borrowers, facilitated credit-information sharing, assisted price discovery and streamlined execution.

It said the marketplace design allowed lenders to choose the appropriate risk level and simplify operations through Intermediary Services.

Intermediary Services’ custody infrastructure would secure collateral assets in client-by-client segregated wallets powered by Swiss technology company Metaco, providing complete transparency for participants in any loan, Credora said.

The company said the flexible collateral system would include automatic margin calls and liquidations, ensuring reliability during dynamic markets.

Darshan Vaidya, the CEO and cofounder of Credora, said: “We are thrilled to continue to work with the Bermuda Monetary Authority and grow our business under the Bermuda regulatory regime.

“Although it has been a challenging environment for digital asset lending, we value the BMA’s support for more transparent business models and shared interest in making digital asset lending more secure for all participants.”

The company said the feature would be live for eligible lenders and borrowers on the Credora platform after a future announcement.