A lending company has a loan book — unpaid invoices, BNPL balances, merchant advances. Its bank will lend against that book, but never all of it. Banks typically advance 70–75%, and private credit funds 85–90%. Everything above that line has to come from the lending company’s own money. That own money is the most expensive capital it has. Every rupee tied up there is a rupee it cannot lend. PRISM funds part of that gap. Investors buy notes against the loan book, sorted into layers by how much risk each investor wants. The originator keeps lending, and frees up its own capital to grow.
PRISM has originated no loans and deployed no capital. The tranche mechanics run on devnet. Everything on this site describes a system being built, not one with a track record. See Where things stand and Disclosures.

What PRISM is not

PRISM is not a lender. It never makes a loan, never holds one on its balance sheet, and is never the lender of record. That is a deliberate design choice, not a technicality — it is what keeps PRISM out of lending licences and out of credit risk. PRISM also does not compete with the originator’s bank. The bank’s money is cheaper and always will be, because it is priced off the US base rate. PRISM competes with the originator’s own equity, which is far more expensive.

How PRISM earns

A structuring fee when a pool is created, and a servicing fee on the notes outstanding. PRISM is paid the same whether the pool performs well or badly, which is the point — it means PRISM has no incentive to hide a bad pool, and no balance sheet exposed to one.

Where it runs

Arc

Circle’s Layer 1 carries the pool — receivables, tranches, the waterfall and the first-loss floor. USDC is the native gas token.

Solana

Carries distribution. Junior and mezzanine risk capital is raised here.

USDC

Every pool is denominated in it. CCTP and Gateway move it between the two chains.

Start here

How it works

The four layers, a worked example, and the life of a pool from onboarding to maturity.

Core concepts

What a tranche is, what first loss does, and why the originator is the risk that matters.

Go further

For originators

What you get, what it costs, and what we need from you before a pool opens.

For investors

The three notes, where each starts losing, and what you cannot do.

Risk and protections

The four controls, the Goldfinch case study, and where protection stops.

Economics

Where the money goes, and why the asset has to earn 15% or more.

Architecture

Two chains, the Circle products in use, and what version one deliberately excludes.

Disclosures

What PRISM has not done, which numbers are assumptions, and the risks we cannot remove.