Unlock Retail Liquidity for NPL Portfolios
Direct access to the retail market for DID-verified participants. Zero cost. The first fully compliant platform for Originators and Servicers under EU Directives (SMD, MiCAR, DLT).
From Illiquid Debt to Digital Asset
A streamlined process that transforms complex NPL portfolios into tradeable, transparent, and compliant digital assets, from origination through recovery.
Identity Verification
Participants mint a self-sovereign IOTA DID and complete required external KYC/KYB checks. NPLEX verifies the credentials and approves the identity on-chain via the NPLEXRegistry, granting role-based access.
On-Chain Notarization
The originator (bank or financial institution) computes a cryptographic hash of the NPL due diligence documentation and creates an immutable Notarization object on IOTA's Identity layer, anchoring the portfolio on-chain.
NPLEX Approval
NPLEX reviews the submitted Notarization, verifies the documentation, and registers it in the on-chain NPLEXRegistry, binding the notarization to the authorized originator. Only approved notarizations can be used to create packages.
Package Creation
The originator deploys the LTC1 contract referencing the approved Notarization, defining token supply, price, nominal value, and investor/owner revenue split. The notarization cryptographically binds the package to its due diligence documentation.
Sales & Investment
Once the Admin opens sales, investors browse the marketplace and purchase LTC1Tokens. Each token is an NFT tracking proportional ownership and revenue entitlements, all on-chain.
Recovery & Distribution
As the servicer recovers funds from debtors, revenue is deposited on-chain. Investors claim their proportional share automatically, enforced by the smart contract's waterfall logic.
Solving Real Problems in the NPL Market
The traditional NPL market is plagued by illiquidity, opacity, and manual processes that increase costs and reduce recovery rates. NPLEX addresses each of these challenges through on-chain automation.
Illiquid Portfolios
NPL portfolios require months to sell, large minimum tickets (€5M+), and exclude smaller investors entirely. Capital stays locked.
→ Tokenization creates fractional, instantly transferable positions accessible to any qualified investor.Opaque Due Diligence
Buyers rely on PDF data tapes and spreadsheets. Provenance is hard to verify, and information asymmetry creates distrust and price discounts.
→ On-chain notarization creates an immutable audit trail. Every document hash is verifiable, every transaction is transparent.Unverifiable Revenue Distribution
Revenue recovery lacks transparency. Investors depend on servicer reports with no way to independently verify amounts or timing of distributions.
→ Revenue is deposited on-chain into a pooled smart contract. Distribution is calculated proportionally and enforced by code, fully transparent and verifiable by anyone.Built on the LTC1 Standard
A proprietary on-chain protocol for tokenizing, distributing, and fractionalizing NPL assets — built natively in Move for IOTA. Read our Light Paper →
Identity Verification
Every participant must hold a verified IOTA DID. Identity and role permissions are checked on-chain via DelegationTokens, keeping sensitive PII off-chain.
- On-chain DID profiles via IOTA Identity
- Role-based approval tracked in NPLEXRegistry
- DelegationToken verifies identity at transaction time
LTC1 Token Standard
Proprietary Semi-Fungible Token standard built natively in Move for IOTA. Each NPL package becomes a shared on-chain object with proportional ownership.
- NPL portfolios tokenized as LTC1Package shared objects
- Investors receive LTC1Token NFTs tracking balance & revenue
- All ownership data is on-chain and verifiable in real time
Revenue Waterfall
Smart contract-enforced revenue distribution. When recoveries arrive, proceeds are split proportionally, no intermediaries, no delays.
- Owner deposits recovered revenue on-chain
- Investors claim their share: (balance ÷ supply) × revenue
- Double-claiming is impossible by design
Fractionalization
Native fractionalization protocol built in Move. Any LTC1Token position can be split into standard fungible coins, tradeable on any DEX, with full revenue tracking preserved.
- Fractionalize positions into Coin<F> tokens
- Trade fractional shares on any IOTA DEX
- Redeem back to LTC1Token at any time
Built on EU Compliance
NPLEX is designed from the ground up to adhere to the strictest European financial and data regulations.
Secondary Market Directive
The "Bible" of NPLs in Europe. Defines clear roles for Credit Purchasers and Servicers, introducing the "European Passport".
NPLEX ensures all Servicers acting as Oracles are fully authorized under this Directive.
EBA NPL Data Templates
Mandatory technical standards with 129 standardized data fields (69 mandatory) that banks must use when selling NPLs.
Our validation protocol strictly checks these templates before tokenization to ensure data quality.
Prudential Backstop
Forces banks to provision capital (Calendar Provisioning) if NPLs are not sold or recovered in time.
Market Urgency: NPLEX accelerates sales to stop capital burn for Originators.
DLT Pilot Regime
EU pilot framework granting targeted exemptions from MiFID II and CSDR for trading and settlement of financial instruments on DLT.
Provides the legal framework for NPLEX to operate as a DLT-based market infrastructure.
Markets in Crypto-Assets
The comprehensive EU framework regulating crypto-assets, classifying tokens as ART, EMT, or utility tokens.
LTC1 tokens operate at the intersection of MiCAR and MiFID II, demonstrating NPLEX's regulatory maturity across both traditional finance and DLT frameworks.
GDPR & Privacy
Strict protection of personal data, ensuring no sensitive debtor info is ever public.
We store PII off-chain. Identity verification uses IOTA DIDs, ensuring privacy-preserving KYC with on-chain proof rather than centralized databases.
EU Digital Identity
The European standard for electronic identification and trust services for electronic transactions in the internal market.
NPLEX uses IOTA DIDs for all participants. These self-sovereign identities align seamlessly with the new European Digital Identity Wallet framework.