An on-chain protocol for real estate promissory note issuance, assignment, and settlement — legally enforceable under UCC Article 12 in 25+ US states.
A Weksil is a blockchain-recorded promissory note representing a verified claim on a real estate debt instrument. Each note carries its complete lifecycle on-chain: origination, every assignment, every endorsement, every servicing transfer, every payment. The chain of title is immutable, verifiable, and legally enforceable.
Under UCC Article 12, whoever "controls" the on-chain record is the legal holder of the note — the digital equivalent of physical possession. Transfers execute instantly via smart contract. No paper assignment. No recording delay. No broken chain.
Originator issues note on-chain → Verification oracle confirms collateral → Note trades on secondary market → Smart contract transfers control → Servicing auto-updates
UCC Article 12 creates a "qualifying purchaser" rule — the digital equivalent of "holder in due course" for paper notes. A good-faith buyer who acquires control of a Weksil takes it free of prior claims and defenses. This is the single most important legal feature for secondary market adoption: verified on-chain control equals clean title.
For institutional note buyers, this means: if the on-chain record shows a clean chain of control and you acquire it in good faith, you own the note. No more paying attorneys $1,500–$3,000 per note to verify a paper trail.
| Decision | Choice | Rationale |
|---|---|---|
| Blockchain | Ethereum L2 | Low cost, high throughput, institutional adoption trajectory |
| Token standard | Custom ERC-721 extension | Each note is unique with embedded metadata: borrower hash, collateral, terms, assignment history |
| Oracle network | Chainlink + title/valuation APIs | Collateral valuation, title verification, lien position, payment status |
| Privacy | Zero-knowledge proofs | Borrower identity hashed. Trade details private. Assignment chain verifiable. |
| Settlement | Atomic swap + escrow | Funds and control transfer simultaneously. Neither party exposed to counterparty risk. |
| Compliance | On-chain KYC/AML | Accredited investor verification. CFPB and state lending law compliance built in. |
| Framework | Jurisdiction | What it provides |
|---|---|---|
| UCC Article 12 | 25+ US states incl. New York | Controllable Electronic Records — legal ownership, transfer, and security interest perfection for blockchain notes |
| ESIGN / UETA | Federal + all 50 states | Electronic signatures legally equivalent to handwritten |
| A.R.S. § 44-7061 | Arizona | Blockchain signatures and smart contracts legally recognized |
| Wyoming Digital Asset Framework | Wyoming | Most progressive US digital asset law |
| UNCITRAL MLETR | International | EU expansion path via Poland's MLETR working group |
The full protocol specification, competitive landscape, go-to-market strategy, and technical architecture are detailed in the Weksil whitepaper.
The whitepaper covers the full technical architecture, competitive landscape, go-to-market strategy, and legal framework. The open protocol specification will be published on GitHub.
Poland's Ministry of Digital Affairs published a comprehensive report on electronic promissory notes on the Ethereum blockchain (2018–2019), including a working smart contract prototype. The working group included ING Bank, Jagiellonian University, Oracle, and NASK. Their source code is published on GitHub.
Weksil builds on this foundation with a US-specific legal framework (UCC Article 12 vs. MLETR), a focus on real estate mortgage notes rather than general commercial paper, and a go-to-market strategy targeting the secondary note trading market.
We're happy to discuss the technical architecture, legal framework, or partnership opportunities.
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