In the wake of the collapses of Tricolor and First Brands, Setpoint, a digital infrastructure provider for asset-backed finance, 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.
“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,” Stuart Wall, CEO and co-founder of Setpoint, said. “That’s what Setpoint delivers: verified asset data, including PledgeCheck.”
Setpoint’s certification is designed to replace 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 growth of the ABF market will be hampered by the trust gap that has been created between capital users and providers,” Bart Steenbergen, senior vice president of capital solutions at Setpoint, said. “Setpoint PledgeCheck is the unifying solution that will harden the existing framework that borrowers, lenders, issuers and investors rely on.”
The Setpoint Pledge Certification extends protection provided to originators and lenders already running their end-to-end funding operations directly on Setpoint to the rest of the market, aimed at giving lenders and borrowers a shared standard for ensuring collateral integrity.
Wall added, “Right now, every lender is asking the same question: ‘How do we know what we own?’ This certification gives them a definitive answer and a standard everyone can adopt immediately.”
