From claims to whole settlement

The identified problem

An Alkaimi Ecosystem™ member financial institution does not leave the claims system on the day it joins the ecosystem. The claims system is the settlement of one financial institution's promise with another financial institution's promise, in a currency that is the nation's promise, and every financial institution that operates the fractional reserve model settles inside it. The member financial institution still carries three kinds of claim from it.

Checks and transfers

The member financial institution's clients still receive checks and transfers from financial institutions that are not members, and every one of those is a claim on the financial institution that sends it.

Balances at other financial institutions

The member financial institution still holds balances at other financial institutions and still settles its currency business through them.

Ordinary currency deposits

The member financial institution still takes ordinary currency deposits.

Until each of those claims is settled, the member financial institution is exposed to the promise of a financial institution still operating the fractional reserve model, and a promise from such a financial institution is what the members evaluated and rejected on the first page of this section.

The problem is how a member financial institution takes the claims the claims system sends it without carrying the risk of the system that sends them.

Why Alkaimi Ecosystem member financial institutions became concerned

The risk in a claim on another financial institution is the interval between the day the claim is received and the day it is settled, and the condition of the paying financial institution during that interval.

Under the fractional reserve model that interval is spent holding another financial institution's promise.

• In 2023 the speed at which such promises could be called was measured in hours. On 9 March 2023 the depositors of Silicon Valley Bank withdrew 42 billion dollars in one day;
• on the morning of 10 March 2023 a further 100 billion dollars of withdrawals were scheduled, against 175 billion dollars of deposits at the previous year end, and regulators closed the financial institution that day.

A member financial institution whose value business stands on substance while its currency business carries unsettled promises from financial institutions that are not members would have moved half its balance sheet out of the claims system and left the other half inside it.

Alkaimi Ecosystem member financial institutions concluded that the boundary between the two halves had to be a rule of construction, applied at one place, and not a matter of judgment applied case by case.

How the 100% Whole Reserve model resolved the problem

The boundary is the member financial institution's desk: the one place in the ecosystem where a nation's currency meets recognized value.

The currency side

On the currency side of the desk the member financial institution operates as it always has, under the rules that already govern it.

The value side

On the value side stands the Alkaimi Ecosystem's ledger, on which there is value and nothing else, and into which no currency and no claim on any financial institution ever passes.

The rule at the desk

The rule at the desk has four parts.

Taken at the desk

A claim from a financial institution that is not a member is taken at the desk, on the currency side, and goes no further. Currency arriving from a client's own business is met at the desk and does not pass to any other part of the ecosystem.

Settled before release

The member financial institution releases nothing against that claim until the claim has settled in central bank money, on the same-day, final settlement system its central bank already operates and the member already uses. At that instant the paying financial institution's promise is extinguished by a movement in the central bank's books, and the member financial institution's exposure to that financial institution has ended. The member's risk on a claim from a financial institution that is not a member is therefore the interval to settlement and no longer, and it is managed as every such exposure is managed today, by limits on the amount outstanding and by settlement in the central bank's books.

Exchanged on instruction

On the client's instruction the settled currency is exchanged at the member financial institution's desk for whole value already held on the Alkaimi Ecosystem's ledger. From that instant the client's holding is a claim on no financial institution, the currency stays in the member's own currency accounts under the rules that already govern them, and the chain of claims ends at the desk.

Two lanes between members

Between two Alkaimi Ecosystem member financial institutions there are two lanes. Currency settles between them through their correspondent relationships as it does today. Value settles between them on the Alkaimi Ecosystem's ledger, final when the value moves. As their business moves from the currency lane to the value lane, their exposure to each other's promises falls.

The Alkaimi Ecosystem's ledger holds the boundary by construction, not by policy.

The rules of the ledger hold the members to one another: a holder that fails to maintain the asset behind its Digitized Tangible Assets™ (DTAs™), or that engages in fraud or other unlawful conduct, has every DTA it issued and still holds frozen, and every DTA it holds from other sources liquidated to cover its obligations.

The rule applies to every holder alike, and it is what makes each member a trustworthy counterparty to the others without any member trusting another's promise.

The rule answers the failure at the center of past attempts at a shared reserve between nations, in which no member trusted another to release its reserves to pay a third.

Alkaimi Ecosystem member financial institutions found that the four-part rule at the desk lets a member take every claim the claims system sends it and hold none of them beyond settlement.

Why the 100% Whole Reserve model serves the Alkaimi Ecosystem member financial institution over the long term

An Alkaimi Ecosystem member financial institution never has to leave the payments system to leave the claims system.

The member takes every check and transfer the world sends its clients, settles each in central bank money as it does today, and holds none of them as a promise beyond the interval to settlement. The claims it still carries are its own currency business, under its own regulator, and that business shrinks as its clients' value moves to the ledger and as its own created deposits retire.

A ledger of whole value settles only between the Alkaimi Ecosystem member financial institutions that hold value on it.

Alkaimi Ecosystem member financial institutions therefore chose a collaborative network under one administrator, which sets the operating standards for every member and decides questions of fact between them, because acting alone no financial institution could have held a reserve of whole value that settled with anyone.

As the Alkaimi Ecosystem's ledger expands, the share of the members' settlements that runs in the value lane rises, and every member financial institution's exposure to the promises of financial institutions outside the ecosystem falls with it.

The members do not compete with the currency a nation issues: the 100% Whole Reserve™ model settles beside that currency, and the members hold, by consensus among them, that the issue of a nation's currency is the sovereign's right.

Alkaimi Ecosystem member financial institutions found that the move from claims to whole settlement is made one settlement at a time, at the desk, on a rule that needs no one's trust, and that the rule holds for every year the ledger grows.

Sources

The Alkaimi Financial Ecosystem™ in Function, Granular Value on a Neutral Rail, Pegisai Global Holdings, Inc., released 22 August 2026, published on pegisai.com 5 September 2026: section 6 (the member's desk as the only crossing; currency at the desk only), section 10.15 (the asset maintenance and conduct rules), section 11 (settlement extinguishes the obligation). Bank for International Settlements, Committee on Payments and Market Infrastructures, Principles for financial market infrastructures, April 2012, Principle 8, settlement finality. Federal Reserve, Fedwire Funds Service, final settlement in central bank money. California Department of Financial Protection and Innovation, order taking possession of Silicon Valley Bank, 10 March 2023; testimony of the Vice Chair for Supervision of the Federal Reserve Board to the Senate Committee on Banking, Housing, and Urban Affairs, 28 March 2023. The ecosystem's operating rules on the desk, settlement before release, conversion on instruction and the two lanes.

Compliance statement

This page is an institutional communication published on behalf of the regulated member financial institutions of the Alkaimi Ecosystem. The page is not a solicitation, an offer or an advertisement of banking, investment or other financial services, and it does not offer any product or service to any person.

The member financial institutions and their counsel have reviewed this page and the pages of this section for compliance with the financial promotion, consumer protection and advertising rules that apply in the members' jurisdictions, as the members and counsel understand them. The ecosystem's regulatory position is stated in full in the Legal section of this site.