Cap Finances provides onchain collateral backing for Wake film production tax credit financing, with lenders protected by underwriter collateral.
RWA & Tokenization ·
Cap announced financing for Wake, a feature film, against anticipated production tax credits through its credit marketplace. The transaction marks the platform's entry into film and media financing. Coinbase Wrapped Bitcoin serves as the onchain collateral backing the loan, with Legacy named as the underwriter. Depositors can review the borrower details and collateral asset on Cap's public borrower page as the platform expands beyond crypto-native lending strategies.
The financing structure separates onchain and offchain risk. Cap provides capital upfront while the production's tax-credit proceeds remain to arrive later and offchain. Specialized underwriters assess the production's credit risk independently and deposit their own onchain assets to guarantee repayment to lenders. This model allows borrowers to retain existing industry financing structures while underwriters assume the offchain risk in exchange for a premium. Lenders do not directly evaluate the film's tax credits; instead, they rely on underwriter collateral escrowed on Ethereum.
Cap operates 16 independent underwriters across sectors and plans to expand through their expertise rather than building internal credit teams. The announcement does not identify which underwriters participate in Wake's loan or disclose fixed returns to lenders. Cap's documentation describes how borrowers access reserve liquidity once sufficient collateral delegation is obtained, with interest rates determined by a formula combining benchmark rates, utilization costs, and negotiated underwriting premiums.