On-Chain Margin Layer
PlannedStock issuance meets perps: the planned connection between Edel Stocks and Edel Markets.
Stock Issuance + Perps = the Margin Layer
Edel Stocks + Edel Markets = the On-Chain Margin Layer.
Edel Stocks provides the assets. Edel Markets is the planned venue for perps and other trading. The Margin Layer connects them so eligible tokenised stock positions could be used as margin for perpetual futures.
The goal is to give a stock position two uses: economic exposure to its reference asset and collateral value that can support another trade. This is a foundation for on-chain prime brokerage on Canton.
From Stock Exposure to Trading Capacity
The planned workflow connects an existing asset position with a new trading position:
- 01Hold eligible Edel Stocks. A stock token represents contractual economic exposure to a referenced stock or ETF. Eligibility as collateral would be defined separately.
- 02Determine accepted collateral value. The system would need to value the position and apply the collateral policy; market value and available margin are not necessarily equal.
- 03Use that margin to trade perps. A perpetual futures position creates separate trading exposure on Edel Markets. The stock token serves as collateral rather than being sold to fund the trade.
- 04Monitor both exposures. Collateral prices and trading profit or loss affect margin health. A shortfall may require additional collateral, a smaller position or liquidation under the eventual rules.
This is a conceptual workflow, not a published transaction sequence or API. Contract specifications and operating parameters remain to be defined.
From stock holdings to perp margin
Hold eligible Edel Stocks
Start with stock exposure that meets future participation and collateral requirements.
Assess eligibility and valueAccepted collateral value
Determine the value that may support a position under the future rules.
Support trading marginBack a perp position
Use accepted collateral as margin for perpetual futures trading.
Ongoing risk managementMonitor margin
Track collateral and position requirements under the future risk framework.
Open Use and Access
The vision is permissionless use and open composability: tokenised assets that can move through a DeFi ecosystem and be used by compatible applications. The Margin Layer gives that vision a concrete purpose — stock collateral for perps.
Current access rules still matter:
- Secondary trading:: users do not need to complete Titan's primary-market onboarding simply to trade on supported secondary markets. Applicable legal, sanctions and jurisdictional restrictions apply.
- Primary issuance and redemption:: minting and burning remain restricted to approved participants and controlled by Titan with support from approved market makers.
- Future margin use:: supported collateral, participant eligibility and risk requirements must be specified before launch. Holding a stock token does not automatically make it eligible margin.
Permissionless composability is the direction of travel, not a statement that every participant or operation is unrestricted today.
From Asset Value to Usable Margin
A stock position's value is not automatically its available margin. A production Margin Layer needs explicit rules for what collateral is accepted, how it is valued and what happens when risk changes. These are design requirements, not published Edel parameters.
| Area | What must be defined |
|---|---|
| Collateral eligibility | Accepted instruments, concentration limits and participant requirements. |
| Valuation | Price sources, update frequency and how the Stocks multiplier, dividends and corporate actions enter valuation. |
| Margin requirements | Collateral discounts, initial and maintenance margin, and permitted leverage. |
| Perp mechanics | Contract specifications, settlement assets, funding and profit/loss accounting. |
| Liquidation | When a shortfall triggers action, how positions or collateral are realised, and how losses are handled. |
| Market hours and liquidity | How stale prices, market closures, price gaps and stressed liquidity are managed. |
The Path to On-Chain Prime Brokerage
The Margin Layer connects the assets and the trades. Prime brokerage describes the wider experience.
The institutional principle is familiar: eligible investment positions can support additional financial activity. Edel's ambition is to bring that utility on-chain through connected issuance, collateral and trading, and make it accessible to more people.
This does not mean every service of a traditional prime broker is included. The scope described here is the planned stock-collateral and perps connection. The Economic Model explains how activity across the two products can contribute to fee generation and EDEL buyback capacity.
What Is Live and What Comes Next
Live: SPYe and QQQe trade on Cantex Exchange, providing exposure to SPY and QQQ. Primary minting and cash redemption remain restricted.
Planned: Edel Markets, the Margin Layer, stock collateral for perps and the combined prime brokerage experience.
No collateral schedule, leverage limit, liquidation specification, margin API or launch date has been published here. For integration discussions, contact tech@edel.finance.