Lombard Systems Raises $4M Across Pre-Seed and Seed Funding Rounds

Lombard Systems, a Dubai and NYC-based provider of the Delivery-versus-Lock (DvL) standard, has raised $4 million across Pre-Seed and Seed funding rounds.

The round was led by Ethereal Ventures with participation from Alps Capital, First Commit Capital, Veris Ventures, Atka, and others.

The company will use the funding to support the adoption of its Delivery-versus-Lock (DvL) standard among financial institutions. Its plans include completing legal opinions across several jurisdictions, adding more institutional partners, expanding integrations and growing its team.

What is Lombard Systems?

Lombard Systems develops the Delivery-versus-Lock (DvL) standard, which allows financial institutions to use tokenized and digital assets as collateral without transferring them from their existing securities accounts.

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In traditional lending arrangements, borrowers often need to transfer collateral to lenders or third-party agents. This process can involve complex legal documents and take time to complete.

DvL offers another approach. Under this standard, assets remain in the borrower's name with a custodian, broker-dealer or transfer agent. The lender receives a legally enforceable security interest, recorded through a cryptographically signed document called a Credit Receipt.

The borrower retains beneficial ownership of the assets. If a default is confirmed, only the amount owed is transferred to the lender under terms agreed in advance.

How Much Funding Has Lombard Systems Raised?

Lombard Systems has raised $4 million across its pre-seed and seed funding rounds.

The company has not disclosed the individual amounts raised in each round or its total funding from previous investments.

Who Invested in Lombard Systems’ Funding Rounds?

The funding was led by Ethereal Ventures.

Other participating investors include Alps Capital, First Commit Capital, Veris Ventures and Atka, along with additional backers.

Why the Funding Matters

Lombard Systems will use the funding to support the adoption of the DvL standard by financial institutions.

A key priority is completing legal opinions in the United States, England and Wales, as well as five additional jurisdictions. The company also plans to add more Control Locations, expand institutional integrations and increase its team.

These steps are intended to help financial institutions use tokenized and digital assets as collateral under legally supported arrangements.

Who founded Lombard Systems?

Lombard Systems was founded by Rico van der Veen, Humayun Javed and Quentin. The company operates from Dubai and New York.

It is the trading name of Semiliquid Tech Labs Ltd, which created and maintains the DvL standard.

"Tokenized stocks and funds are scaling now. Origination and enforcement of loans against tokenized collateral have to be as fast as the assets can move, while staying grounded in existing securities law," said Rico van der Veen, Co-Founder and CEO of Lombard Systems.

Market and Business Growth

Lombard Systems is working in the growing market for tokenized financial assets and digital asset-backed lending.

As more securities move onto digital platforms, financial institutions are looking for ways to use these assets in financing arrangements without changing existing custody structures.

The company is expanding its institutional integrations and Control Locations to support the use of its standard across different markets.

What Happens Next?

Lombard Systems plans to complete legal opinions across eight jurisdictions, expand its network of Control Locations and add more institutional integrations.

It will also grow its team to support wider adoption of the DvL standard among financial institutions.

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