Syndicated loan and private credit markets depend on manual interpretation of bespoke legal agreements, which slows secondary settlement and creates reconciliation overhead. Nammu21‘s proof-of-concept with Google Cloud addresses this by converting governing loan terms into a Digital Credit Instrument and executing them as smart contracts on the Google Cloud Universal Ledger (GCUL). The article walks through the design, the gculpy programming model, and a realistic Term Loan B implementation.

Loan Market Association data cited in the article puts Q4 2024 secondary settlement times for par/near par loans at an average of 42 days, with a median of 27 days. Those delays tie up capital, increase counterparty risk, and burden participants with reconciliation. Nammu21‘s approach is to render each facility’s governing terms as a DCI, mapping every condition, consent, eligibility criterion, and operational mechanic back to its originating legal provision, then express those elements as executable behaviours against the loan’s live state. GCUL provides the execution environment: a permissioned, institutional-grade distributed ledger with near-instant finality and predictable costs, without the volatility or security concerns of public blockchains.

Contracts on GCUL are written in gculpy, a strict, statically-typed subset of Python designed to be safe, readable, and auditable. The article highlights two operational advantages over other ledger programming models: developers avoid complex memory management and restrictive call stack limits, and built-in permissioning requires explicit user authorization before a contract can store data on a user’s behalf. That solves the unsolicited asset problem on public networks, where unwanted tokens can be pushed into an organization’s wallet and create compliance or accounting issues. Nammu21 operates in two roles: the platform programmatically renders the DCI from the legal agreement without manual document reading, then derives gculpy contracts that use the DCI’s terms to define what the loan permits, requires, and blocks.

The technical walkthrough uses a $1.945 billion Term Loan B segment of a multi-facility transaction. The agent bank selects a credit agreement transformed by Nammu21, structured terms are returned instantly, and a unique gculpy contract is instantiated on GCUL as an on-ledger digital twin of the loan facility. Borrower and lender onboarding is a multilateral action: each participant reviews the request and explicitly consents from their own interface. After onboarding, the agent bank records an immutable hash of the loan’s key terms on-ledger, attesting that on-ledger data matches canonical off-ledger records. Lifecycle events such as secondary transfers and repayments are multi-step, consent-driven workflows; a transfer requires new lender, borrower, and agent bank consent before atomic execution on the ledger. Payment flows, from interest payments through loan close-outs, settle directly on GCUL using tokenized commercial bank money, without external payment rails.

The article frames the design around three pillars: compliance via gated execution, where every action is validated against the governing terms before execution, preventing covenant breaches and invalid transfers with no silent failures; role-based privacy, so trading strategies, positions, and sensitive loan data are visible only to necessary counterparties; and settlement finality, with near-instant completion anchored on canonical data from the original credit agreement. The business argument is that values can be reconciled bilaterally, but governance logic cannot; the market’s friction comes from each party independently interpreting the rules. Putting that interpretation on-ledger is what compresses settlement times, shrinks back-office overhead, and makes counterparty risk mitigation part of the design rather than a manual check. The article notes the same architecture applies wherever credit terms are bespoke and manually interpreted, freeing capital trapped in long settlement cycles and supporting a more liquid secondary loan market.