A pledge is an agreement between borrower and lender where the borrower pledges the securities as an asset against the cash taken from the lender and promises to return the amount.

Edaa facilitates this process, where the borrower pledges their securities against their debt using a fully automated risk reduction tool.

Upon the agreement, after the payment of the obligation the lender must return the securities to the borrower and the agreement stands void. In the case of a default on the debt, the lender is authorized upon the agreement to sale the securities.