# Partners USD.AI has built a holistic ecosystem of partnerships and risk management tools that work together to protect lenders and ensure loan performance. These are not simply vendor relationships; they represent a productized approach to credit risk mitigation for AI infrastructure. *** #### PayPal & Paxos Trust Company — Lending Currency & Payment Rails All USD.AI loans are denominated in PYUSD, PayPal USD, a fully-backed stablecoin issued by Paxos Trust Company on behalf of PayPal. PYUSD enables the protocol's smart contract escrow, automated payment waterfalls, and on-chain transparency, all while maintaining full dollar backing. For borrowers, this means institutional-grade payment infrastructure without the friction of traditional wire-based settlement. **The 4.5% Customer Incentive Program** PayPal provides a 4.5% annual incentive on PYUSD held in the protocol, on up to $1 billion in loan backing for 2026. This incentive accrues at the protocol level and flows through to sUSDai yield, creating a mechanism to compress borrower rates across the network. Borrowers who elect to hold their Debt Service Reserve Account (DSRA) in USDai are eligible to receive a reduced effective borrowing rate as a result of this arrangement. Looking ahead, PayPal's payment rail infrastructure provides the foundation for USD.AI's broader payments vision: a settlement layer where GPU financing, counterparty payments, and end-user compute billing all operate on a single, yield-generating rail. More information about this partnership can be found [here](https://usd.ai/insights/pyusd-paypal-usdai-integration). *** #### Aravolta — Hardware Monitoring Aravolta provides real-time hardware monitoring for all collateralized GPU assets in the USD.AI portfolio. This includes continuous software-level oversight of machine usage, uptime, and physical location, giving the protocol ongoing visibility into the health and productivity of its collateral base throughout the life of each loan. For borrowers, Aravolta's integration is a standard component of the loan onboarding process. The monitoring layer supports the protocol's underwriting standards and provides the operational data needed for ongoing loan servicing and, where necessary, enforcement. *** #### Alliant Insurance Services — Cluster Insurance Alliant Insurance Services is USD.AI's insurance provider for GPU cluster coverage. One of the largest insurance brokers in the world, Alliant sources and places property and casualty insurance on the collateralized hardware underlying every USD.AI loan, covering physical GPU clusters against loss, damage, and other insurable events throughout the life of the financing. This coverage is a standard requirement for all collateralized loans. *** #### Barkr — Value Reinsurance Barkr provides value reinsurance for GPU collateral, a dedicated form of hardware insurance that protects against unexpected depreciation or loss events beyond what standard insurance covers. This adds a protection layer on top of collateral value in the event of a default or liquidation scenario, preserving recovery value for the protocol and its depositors. Barkr coverage is part of the standard collateral protection stack embedded in every USD.AI loan, not an optional add-on. More information can be found on our [blog](https://usd.ai/insights/usdai-barker-insured-gpu-loan-coverage). *** #### ITAD Partners — Hardware Retrieval & Resale USD.AI maintains partnerships with IT Asset Disposition (ITAD) firms who provide the operational capability to physically retrieve and resell GPU hardware in the event of a default. This ensures that recovery value is realizable in practice, not merely theoretical, a critical distinction when collateral consists of physical infrastructure distributed across datacenters. ITAD partnerships complement the on-chain auction mechanism: once an NFT is sold at auction, ITAD partners provide the logistical infrastructure for the new owner to take physical possession of the underlying hardware if needed. *** #### Wilmington Trust — Escrow Agent Wilmington Trust, National Association serves as the independent Escrow Agent for all USD.AI loan transactions, holding loan proceeds in segregated per-loan sub-accounts from purchase order funding through to hardware installation and escrow release. Disbursements require Joint Written Instructions from at least two of three authorized signatories, the Lender, the Bridge, and the Independent Custodian, ensuring no single party can unilaterally release funds. Wilmington Trust provides the neutral, institutionally credible custody layer that sits between capital commitment and verified hardware deployment. *** #### Real-Time Financial Verification - Coming Soon USD.AI is integrating a real-time financial verification partner to provide independent, cryptographically-backed confirmation that loan funds are properly escrowed throughout the pre-closing process. This verification layer will give the protocol and its depositors continuous assurance that escrowed capital is accounted for at every stage and will sit alongside Wilmington Trust's custodial role as a complementary, independent data source supporting USD.AI's broader commitment to on-chain transparency and proof of reserves. *** #### Regional Origination Partner USD.AI works with regional origination partners across select jurisdictions to identify prospective borrowers, conduct initial screening, and refer qualified opportunities to the USD.AI underwriting team for approval. Transactions originated through these partnerships follow the same loan process, legal architecture, and underwriting standards as all other USD.AI loans. *** #### iDenfy — Identity Verification & Compliance iDenfy is USD.AI's identity verification partner, powering the KYC and KYB compliance layer for all borrower onboarding. Every prospective borrower must complete identity and business verification before accessing GPU financing. iDenfy handles this end-to-end, verifying government-issued documents, running biometric face matching, and screening against global sanctions lists and PEP databases. *** #### Bridge Lenders — Purchase Order & Gap Financing USD.AI works with a network of bridge lenders who provide short-term gap financing during the period between purchase order placement and permanent debt takeout. Bridge lenders fund the OEM directly during the server build and shipping period, taking an interim UCC-1 security interest in the hardware during transit. Upon installation, verification, and escrow release, the bridge is fully repaid from loan proceeds and their security interest is released. This structure allows borrowers to move quickly on hardware procurement without waiting for the full permanent financing close, a meaningful operational advantage in a market where GPU availability and delivery timelines are competitive.