Collateral Grade

A lending market that accepts a tokenized stock as collateral has to answer an awkward question: what happens when the balance changes overnight? If it was a dividend, the position got bigger. If it was a split, nothing really happened. Get it wrong and you liquidate someone by accident.

Most protocols solve this by refusing the asset, or by demanding a loan-to-value ratio so conservative it is not worth posting. Both are rational responses to accounting nobody can verify.

Once every corporate action is typed, timestamped and provable, that objection goes away. The canonical asset becomes underwritable at a ratio that reflects the real risk rather than the uncertainty.