TOLEC was developed to ensure that the security and value of digital financial assets are maintained throughout their lifecycle. This includes the period during and after asset transfer between disparate electronic vaults held by banks, lenders, and institutional investors.

In a typical financing scenario, loan contracts are transferred three to four times throughout their lifecycle until the loan is paid off or terminated. However, transferring electronic contracts between different vaults is not as simple as sharing documents through email or an enterprise file sync share (EFSS) platform. That’s where the TOLEC standard is critical.