The leading capital markets infrastructure platform introduces a certification to verify collateral integrity across lenders and borrowers.

In the wake of the high-profile collapses of Tricolor and First Brands, Setpoint, the leading digital infrastructure provider for asset-backed finance, today launched Setpoint PledgeCheck, a new market standard for programmatically verifying that every asset in a collateral pool is unique and legitimately pledged to a single counterparty.

Setpoint is backed by Citi and Wells Fargo and over 250 lenders and originators already trust Setpoint to standardize asset-level data, automate reports, and maintain an audit-ready view of portfolio performance. The new certification extends that trusted infrastructure to the broader market, giving lenders, borrowers, issuers and investors a shared, independently verifiable standard for collateral integrity.

“As the market calls for greater transparency, Setpoint PledgeCheck allows us to lead by example,” said Braham Mehta, Head of Capital Markets at Fundbox. “We’ve already been using Setpoint to give our lenders independent proof of every asset we finance and this sets a new bar for accountability in private credit.”

"The fragmented web of trustees, custodians, backup servicers, and self-reported borrower data isn't equipped to detect fraud and mistakes in today’s ABF market," said Stuart Wall, CEO and Co-founder of Setpoint. "That’s what Setpoint delivers: verified asset data, including PledgeCheck."

The Tricolor and First Brands failures underscored a long-standing blind spot in the $5 trillion asset-backed finance market: the absence of a shared system to confirm that pledged collateral is unique. Most lenders still depend on borrower attestations and manual spot checks, controls that tend to surface errors or fraud only after losses occur.

Setpoint’s certification replaces those fragmented manual processes with a technology-driven protocol. Borrowers upload their master data tapes and facility-level reports for each lender. Setpoint’s platform automatically runs cross-lender checks to confirm:

• Uniqueness: Combinations of asset ID, collateral ID, or obligor ID are unique and appear in only one active facility.

• Data Integrity: Key fields like address, VIN, or company name are consistent across all reports and during the term of the facility.

• Completeness: Actual collections on assets are matched to what is reported.

• Single Record: Every pledged asset appears in the borrower’s master record as represented, with discrepancies flagged automatically.

The system delivers a real-time, data validation certification lenders can trust before every funding or report approval, while keeping all borrower data secure and confidential between counterparties.

“The growth of the ABF market will be hampered by the trust gap that has been created between capital users and providers,” said Bart Steenbergen, SVP of Capital Solutions at Setpoint. “Setpoint PledgeCheck is the unifying solution that will harden the existing framework that borrowers, lenders, issuers and investors rely on.”

For originators and lenders already running their end-to-end funding operations directly on Setpoint, double pledging is structurally impossible; all collateral data and funding requests live within the same trusted system, preserving a continuous, auditable information chain. The Setpoint Pledge Certification extends that same protection to the rest of the market, giving lenders and borrowers a shared standard for ensuring collateral integrity.

“Right now every lender is asking the same question: How do we know what we own?” added Wall. “This certification gives them a definitive answer and a standard everyone can adopt immediately.”

About Setpoint

Setpoint is the infrastructure powering modern asset-backed finance. The company provides the technology that enables lenders and originators to verify collateral data, automate funding, and manage risk with confidence. Backed by leading investors including Citi and Wells Fargo, Setpoint supports more than $50 billion in annual transaction volume across auto, consumer, SMB, real estate and 16+ asset classes. Founded in 2021, Setpoint is standardizing the way capital moves through private credit, creating a faster, safer, and more transparent market for all participants. Learn more at www.setpoint.io.

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