The underwriting contract, the surety's recourse, the liquidation regime, cross-border authorization, the rent agreement, the commons, the sovereign underwriter and anti-money-laundering, each with the test stated and the facts applied.
The underwriting contract is a warranty of the recognition of a DTA™, given by an authorized insurer, reinsurer or a treasury to the Mint under Pegisai™'s rules, with the drawing right on the recognized asset as the surety's recourse.
For each element below the test is stated first, from the statute, treaty or standard that sets the test, and the facts are applied to that test. Classification in each jurisdiction rests with the underwriter's supervisor under that jurisdiction's law, confirmed by the underwriter's counsel.
The contract is suretyship, not financial guaranty insurance
Test. New York Insurance Law, Article 69, defines financial guaranty insurance to include guaranties against changes in the value of specific assets or commodities, assigns that class to monoline insurers alone (section 6902), and imposes contingency reserves and single-risk limits by class (section 6904). Solvency II, Directive 2009/138/EC, Annex I, lists credit (class 14) and suretyship (class 15) as non-life classes any authorized insurer may write; the NAIC's lines of business carry surety as a line distinct from financial guaranty.
Facts.
The DTA has no change in value to insure: the recognized value never moves.
The underwriting contract warrants existence, title, quantity and recoverability at the floor, and pays only on a failure of the recognition, which is suretyship.
The contract is therefore outside Article 69's class and inside classes 14 and 15, writable by any authorized insurer or reinsurer and reinsurable by any authorized reinsurer.
The 2008 monolines guaranteed correlated structured credit and held nothing on a claim; the recognition underwriter holds the asset's drawing right below recognized worth.
The surety's recourse is subrogation, and the drawing right is property
Test. In every insurance code a surety that pays is subrogated to the rights of the party paid, to the extent of payment. Property in an electronic thing: the Property (Digital Assets etc) Act 2025, section 1 (England and Wales, Royal Assent 2 December 2025); the UNIDROIT Principles on Digital Assets and Private Law (2023); Uniform Commercial Code Article 12 (2022 amendments), controllable electronic records.
Facts.
The underwriter's recourse is the drawing right on the recognized asset, passing to the underwriter to the extent paid, saleable inside the commons, and re-recognizable with the underwriter as issuer.
The drawing right and the DTA are things owned, not claims, in each of the three legal families, so the surety's recourse is property held, not a lawsuit to be brought.
The liquidation regime is contract, enforceable across borders
Test. A contractual regime for default is enforced under the law and forum the parties choose. Arbitral awards are enforceable in more than 170 nations under the 1958 New York Convention. A state's commercial acts are not immune: the United States Foreign Sovereign Immunities Act, 28 U.S.C. 1605(a)(2), and the United Kingdom's State Immunity Act 1978, section 3, remove immunity for commercial activity, and a state may waive immunity expressly. The taking of a foreign investor's right without compensation is expropriation under bilateral investment treaties, arbitrable at ICSID.
Facts.
The liquidation needs no court to marshal the estate, because the estate, the seized DTAs, the frozen issuance and the drawing right, is on the ledger already; enforcement is self-executing.
Where a court is reached at all, the platform's contracts carry a chosen law and an arbitral forum, every issuing state acts commercially in recognizing an asset and taking DTAs in payment, and a state that repudiates a foreign underwriter's drawing right has expropriated a treaty-protected investment.
The regime therefore stands in contract first and in treaty second, and the ledger's possession of the estate makes the first sufficient in the ordinary case.
Cross-border authorization of the underwriter
Test. A reinsurer's contract with an insurer in the European Economic Area is treated as an EEA contract where the reinsurer's home regime is equivalent (Solvency II, Article 172; Switzerland and Bermuda hold full equivalence, Japan reinsurance equivalence, and the 2017 EU-US Covered Agreement removes local presence and collateral requirements for qualifying reinsurers). In the United States, the NAIC Credit for Reinsurance Model Law governs credit for reinsurance from reciprocal jurisdictions. Lloyd's syndicates write under the Lloyd's rules and the United Kingdom's regime.
Facts.
A pool bids from the authorization the pool already holds for suretyship or credit in the pool's home jurisdiction, and reinsures the line under the equivalence and credit rules that already govern the pool's book.
No new authorization is created by the platform; the contract is written to the pool's existing permissions, and the pool's supervisor classifies the pool's DTA holdings under that supervisor's rules.
The rent agreement is custody with recourse against the renter
Test. Under the Global Master Securities Lending Agreement, title to lent securities passes to the borrower against collateral, with equivalent securities returned; under a repurchase agreement, title passes and the securities are repurchased. Custody leaves title with the owner and gives the custodian obligations of care and return.
Facts.
Under a DTA rent agreement, regulated by Pegisai and governed by the law of the licensee's jurisdiction, title stays with the holder throughout; the rented DTAs sit in the renter's custodial rental account for the period; the renter pays the stipend and the maintenance in currency at the desk; the rented DTAs are returned at the end of the period; and the renter's performance during the period, including obligations on use and on return, is governed by the agreement's terms and conditions.
A DTA itself cannot be in default: the renter's failure is the renter's default under the rent agreement, liquidated on the ledger, and the holder is a creditor of the renter's estate for the return of DTAs of equivalent value. Recourse runs against the renter, never the holder.
The commons is a market of syndicates, not a trading venue
Test. A trading venue under MiFID II is a system that brings together interests in financial instruments; a DTA is not a financial instrument and is never traded. Pools of competitors are assessed under Article 101 of the Treaty on the Functioning of the European Union and the national counterparts of Article 101; the EU's insurance block exemption lapsed in 2017, so each pool self-assesses. Lloyd's operates a market of syndicates under the Lloyd's rules and the United Kingdom's regime.
Facts.
The commons allocates signatures by bid, one per stack, tiered; nothing in the commons is a financial instrument, and nothing is traded.
The commons is a market of syndicates in form, administered by Pegisai under published rules, with the account at a gateway licensee as the settlement condition and nothing else from the Pegisai group as a condition of bidding.
Pools bidding as competitors carry the competition-law assessment their counsel already runs on every pool.
The sovereign as underwriter
Test. A sovereign contingent liability requires statutory authority and disclosure under the state's fiscal rules; the International Monetary Fund's guidance on contingent liabilities and the rating agencies' methodologies count guarantees against the state. Official reserve assets under the IMF Balance of Payments Manual, sixth edition, are external assets readily available to and controlled by the monetary authorities, denominated in foreign currency.
Facts.
A treasury's surety capacity in the commons is a contingent liability set by law with a cap, disclosed as such, and the treasury's exposure on a call is a purchase of recognized value below recognized worth rather than a guarantee paid and lost.
A treasury's parked DTAs are treasury assets and are not official reserve assets in the balance-of-payments sense, and the platform's copy never calls them reserves.
Anti-money-laundering
Test. Insurers and reinsurers are obliged entities under the FATF Recommendations and under national law; the FATF definition of a virtual asset turns on use, not technology.
Facts.
Every underwriter holds an account at a gateway licensee, opened under bank-grade customer due diligence, and every fee, call and sale settles on that licensee's managed ledger inside the bank's existing due diligence, record-keeping and reporting.
No virtual asset service provider question arises, because no party outside a licensed bank ever holds or moves a DTA.
Where the classification rests
In each jurisdiction the classification of the underwriting contract, the underwriter's DTA holdings and the rent agreement rests with the underwriter's supervisor under that jurisdiction's law, confirmed by the underwriter's counsel.
Nothing on this page is an offer, a solicitation or a public offering, or legal, financial or investment advice.
Sources: New York Insurance Law, Article 69 (sections 6901, 6902, 6904). Directive 2009/138/EC (Solvency II), Annex I and Article 172; EIOPA equivalence decisions; the 2017 Bilateral Agreement between the United States and the European Union on prudential measures regarding insurance and reinsurance. NAIC Credit for Reinsurance Model Law. Property (Digital Assets etc) Act 2025 (England and Wales). UNIDROIT Principles on Digital Assets and Private Law (2023). Uniform Commercial Code, Article 12 (2022 amendments). Convention on the Recognition and Enforcement of Foreign Arbitral Awards, New York, 1958. Foreign Sovereign Immunities Act, 28 U.S.C. 1605(a)(2). State Immunity Act 1978 (United Kingdom), section 3. Global Master Securities Lending Agreement (ISLA). Directive 2014/65/EU (MiFID II). IMF, Balance of Payments and International Investment Position Manual, sixth edition. FATF Recommendations. S&P Global Ratings, 2024 Annual Global Sovereign Default and Rating Transition Study, 24 March 2025.
This page contains some forward-looking statements. Read Pegisai’s statement on forward-looking statements.