Abstract
1zH (79/47: gold/silver) is a treasury standard anchored in monetary metals, with a capped digital sleeve as measured optionality. The operating objective is to compound hard-asset ownership per share (HAOPS) while financing monitored, economically productive credit.
Core ideas
- Hard-asset anchored treasury with published allocation.
- Two ledgers: unencumbered reserves + disclosed encumbrance pool.
- Purpose-bound credit: controlled proceeds, monitoring, and unwind mechanics.
Summary
Treasury Capital is raised into Class T and held under a published hard-asset basket (gold and silver as the backbone, capped digital sleeve). An Encumbrance Pool may be pledged within policy LTV caps to support secured funding for OpCo. OpCo deploys purpose-bound credit into productive sectors, with controls on use of proceeds and monitoring. Transparency is enforced by the Charter through reporting and attestations.
Success metric
HAOPS (Hard-Asset Ownership Per Share) reported by asset and by encumbered vs unencumbered ledgers.
Charter
The Charter defines allocation, custody standards, attestations cadence, rebalancing rules, and what cannot be done even if it appears profitable short-term. Allocation is expressed as “1zH units” and normalized to 100%.
| Asset | Units | Normalized | $ at $7B | $ at $10B |
|---|---|---|---|---|
| Gold | 70 | 69.31% | $4.851B | $6.931B |
| Silver | 20 | 19.80% | $1.386B | $1.980B |
| BTC | 5 | 4.95% | $0.347B | $0.495B |
| ETH | 3 | 2.97% | $0.208B | $0.297B |
| SOL | 1 | 0.99% | $0.069B | $0.099B |
| SUI | 1 | 0.99% | $0.069B | $0.099B |
| XRP | 1 | 0.99% | $0.069B | $0.099B |
Custody principles
- Metals: fully allocated custody with independent vaulting and serialized bar lists.
- Digital: institutional custody with segregated wallets, multi-sig governance, and controls audit trail.
Encumbrance
The Unencumbered Reserve Ledger is never pledged. The Encumbrance Pool may be pledged only within strict caps and disclosed through a pledge ledger. Policy LTV caps by collateral create a governed borrowing base.
| Collateral | Max policy LTV | Design intent |
|---|---|---|
| Gold | 50% | Operate below cap early |
| Silver | 45% | Haircut + liquidity buffers |
| BTC | 25% | Volatility discipline |
| ETH | 20% | Conservative collateral treatment |
| SOL / SUI / XRP | 15% | Small optionality sleeve |
Reporting cadence
- Monthly: HAOPS, encumbered vs unencumbered balances, pledge ledger, covenant compliance.
- Quarterly: independent metals attestation + digital custody controls review.
Capital
The structure separates reserve exposure, yield, and operating upside: Class T for treasury exposure and governance; Class Y (opt-in) for senior yield paid first from OpCo cash flow; Class O for operating upside. Class Y is capped up to 50% of Class T NAV.
Cash flow policy
- Step 1: Pay Class Y yield (senior; covenant protected)
- Step 2: 60% residual FCF → treasury accumulation (buys basket; grows HAOPS)
- Step 3: 40% residual FCF → operating return pool (Class O), subject to covenants
Credit
Credit is purpose-bound: proceeds tied to defined uses and monitored via controls, milestones, and ring-fenced flows. TreasuryCo runs custody/attestations/rebalancing; OpCo runs underwriting/monitoring/servicing inside a Credit Box with triggers and unwind mechanics.
Purpose-bound mechanics
- Use-of-proceeds restrictions + controlled accounts
- Milestone-based disbursement and reporting
- Ring-fenced settlement flows where applicable
Sectors
Deployment targets areas where cash flows can be structured and monitored:
- Infrastructure finance (emerging markets; India corridor as flagship)
- Non-deposit fintech & financial infrastructure
- Cross-border remittances & payments liquidity
- SME and trade finance
- Wealth-builders / INPL structures (strict suitability and affordability controls)
Base Case
Illustrative capacity snapshot based on $7B–$10B Treasury Capital. Early phases are expected to operate below policy caps to maintain shock resilience.
| Metric | $7B Treasury | $10B Treasury |
|---|---|---|
| Class Y cap (50% of NAV) | $3.5B | $5.0B |
| Intercompany OpCo line (1% of NAV) | $70M | $100M |
| Encumbrance Pool (illustrative max) | $3.5B | $5.0B |
| Secured borrowing at 35% LTV on pool | $1.225B | $1.750B |
| Secured borrowing at 40% LTV on pool | $1.400B | $2.000B |
Governance
Governance begins with Class T reserved matters protecting allocation policy, custody model, encumbrance limits/LTV caps, and capital structure. Implementation is staged: Phase 1 custody/licensing/first facilities; Phase 2 scale within the Credit Box; Phase 3 add wrappers only where regulation is clear and ring-fencing holds.
Disclosures
This content is a confidential draft summary intended solely for discussion with sophisticated institutional counterparties. It is not investment advice and not an offer or solicitation. Any transaction would be subject to definitive documentation, regulatory approvals, and independent diligence.