Haram Products as Collateral / the limits of Rahn

Salaam Walaykum

I recently opened a trading212 INVEST account and as part of their terms and conditions we had to accept what seems to be a share lending, however in the case both the borrowers and trading212 could both be insolvent there was a guarantee of collateral up to the value of 102% of invested shares in the form of US Treasury Bonds. I know investing in US Treasury Bonds is haram so is it permissible to accept this agreement . @Mufti_Billal and @Mufti_Faraz_Adam your opinion would be appreciated, the agreement in full is below.

Since we are your counterparty for all transactions, in the event that we become insolvent, we may be unable to return the shares lent. In addition, due to the chain of borrowing, you may be exposed to counterparty credit risk whereby the borrower may become insolvent. We mitigate this risk in the following way:

  • We require collateral from the Borrower, and shall provide you with the same collateral. The collateral value must be higher than the value of the shares lent, specifically, at least 102% of the value of the shares lent. The collateral will be in the form of US Treasury Bonds, and therefore its value is relatively stable. Importantly, the collateral will be held in a segregated account for you, which means that you are entitled to the collateral in the event of our insolvency.
  • We and not the Borrower, are always your counterparty for the share lending transaction and therefore, even if the Borrower becomes insolvent, we guarantee the timely return of the shares to you with its own equity.

Therefore, with respect to the third party borrower’s insolvency, losses for a client whose shares are lent arises only at the moment when both the Borrower and we are no longer able to meet their obligations (i.e. both the Borrower and Trading 212 are insolvent) and the value of the security has fallen or the value of the shares has increased.

Curious about this as wel.