Neutral Integrity Layer
JIL operates as a neutral settlement integrity layer without custody or trade execution. No balance sheet impact. No custody risk transfer. Clear separation of roles.
Two custodians transferring assets while retaining custody
Two custodians transfer assets between their clients. Both parties need to retain full control of custody. Neither wants to introduce a new counterparty with balance sheet exposure.
Without neutral integrity: Clearing houses and intermediaries assume exposure. Adding a verification layer means adding counterparty risk and balance sheet impact. The institution must evaluate credit risk of the intermediary.
With JIL: JIL validates settlement integrity without assuming counterparty exposure. The custodians retain full custody control. JIL enforces process integrity - beneficiary binding, policy checks, finality proof - without taking custody, holding funds, or executing trades.
Integrity without exposure
- ✓ No custody risk transfer - institutions retain full control of their assets
- ✓ No capital balance sheet impact - JIL is infrastructure, not a counterparty
- ✓ Clear separation of roles - enforcement layer is distinct from execution layer
- ✓ Simpler regulatory classification - JIL does not hold, transmit, or control customer funds
Legacy vs JIL approach
Regulatory clarity by design
JIL enforces configurable policy corridors defined by regulated participants and produces audit-ready evidence receipts. JIL does not hold, transmit, or control customer funds. Settlement execution occurs through licensed banking and payment partners in each jurisdiction.
Verify this pillar
The neutral integrity architecture is documented in the institutional brief and corridor specifications.
Evaluate settlement integrity for your infrastructure
Assess how JIL integrates as a neutral integrity layer without changing your custody model.