I investigate the conditions under which the coexistence of cash (outside money) and credit (inside money) can be supported in equilibrium and be welfare-improving. Asset managers exchange assets to diversify their portfolios using cash and credit with the latter being limited by a non-standard -yet incentive compatible- collateral constraint. If cash is more pledgeable than capital, an equilibrium where cash is “over-leveraged” is welfare-improving. For inflation low enough, debt promises are optimally backed solely by a cash multiple, yielding the emergence of nominal debt contracts.