Earnings

USBC Raises Payward Loan Cap to $40 Million

The Tip Desk · November 11, 2026 · 4 min read

Bitcoin-collateralized principal reached $21.0 million after a September draw, leaving $19.0 million of the expanded facility available.

USBC, Inc. (USBC), a financial-technology company developing a U.S. dollar-denominated tokenized deposit program, still generated no operating revenue in the nine months ended September 30, 2026, matching the zero-revenue run in the six months ended June 30, 2026.

The company said it expects any future operating revenues to come from financial-technology network services, including the planned tokenized deposit offering, and that it expects to continue to incur operating losses in the near term.

Phase 2 of the delivery strategy was underway in the September quarter. Phase 1, an internal employee pilot that tested onboarding, identity recovery, ACH funding, spending, treasury conversion, messaging and activity logging with company-provided funds, was completed in June 2026. Phase 2 expands testing to additional invited participants and is aimed at operational readiness for an initial commercial launch, subject to pilot results and required bank board, regulatory and bank-partner approvals. Phase 3 is intended to support that launch through selected distribution partners; Phase 4 broader commercialization.

The company has developed USBC Pay, merchant payment and settlement functionality on the platform, with an initial version for iOS and Android. A January 2026 tri-party agreement with Uphold HQ Inc. and Vast Bank, N.A. makes USBC the network operator, Vast Bank the initial issuing bank, and Uphold the platform-integration and customer-access provider, with a proportionate revenue share after allocated program expenses.

Development spending continued under an affiliate services agreement with Vast Holdings, Inc. Reimbursements to Vast for development-related costs reached approximately $6.2 million as of September 30, 2026, up from approximately $5.1 million as of July 31, 2026, against a $10.5 million cap that expires December 31, 2026, leaving about $4.3 million of capacity.

Liquidity for that work came largely from a Bitcoin-collateralized master loan agreement with Payward Interactive, Inc. On September 11, 2026, USBC drew an additional $3.0 million, raising principal outstanding to $21.0 million from $18.0 million after the July 28, 2026 draw. Borrowings bear interest at 8.5% per annum and are secured solely by Bitcoin held with Payward Financial, Inc.

On October 12, 2026, a Second Addendum increased the aggregate borrowing commitment from $25.0 million to $40.0 million. As of that date, $21.0 million was outstanding and $19.0 million remained available, subject to borrowing conditions and collateral requirements. The account control agreement was also amended to permit cross-collateralization with certain digital-asset derivative obligations.

The cushion to the 130% collateral-call ratio widened. As of October 31, 2026, a decline of approximately 26% in the value of pledged Bitcoin collateral, assuming no repayment or additional posting, would have reduced coverage to the call level, versus a 22.3% decline as of July 31, 2026. No collateral calls, mandatory repayments or liquidation events had occurred as of October 31, 2026.

On July 1, 2026, USBC entered a consulting agreement with Hard Yaka Ventures Management Co., LLC, an affiliate of Chairman and Chief Executive Officer Greg Kidd, under which Hard Yaka will contribute capital to support continued development. Through September 30, 2026, the company received capital contributions of $2,984,840, recorded in additional paid-in capital.

On August 21, 2026, the company appointed Daniel J. Beck as chief financial officer, effective August 27, 2026. Mr. Beck’s annual base salary is $400,000. On October 1, 2026, he was granted options to purchase 2,500,000 shares at $0.54, vesting 25% on the first anniversary and the remainder ratably over the following three years.

A reverse stock split of 1-for-2 to 1-for-5, approved by the board on June 12, 2026 and by Goldeneye, holder of about 92.2% of voting power, on June 15, 2026, remained not effected as of the September report. The company said it will determine the exact ratio and timing, which may be effected, if at all, within twelve months following June 15, 2026.

The credit facility to the buyer of the legacy sensor business, completed March 27, 2026, had $450,000 advanced as of September 30, 2026, versus $225,000 as of June 30, 2026. The maturity was extended 180 days to March 22, 2027.