Asset custody
Overview of how we custody assets
We know that asset custody is a critical pillar in the secure workings of a stablecoin. This is why we have designed the most secure custody solution and roadmap for the future, for each of our deployment strategies.
Deployment strategy 1: Tokenised treasury bills
Our tokenised treasury bills are held by a licensed broker, Alpaca Securities, via our RWA partner, Dinari. Alpaca is a member of the Financial Industry Regulatory Authority, Inc, as well as SIPC. Alpaca also maintains excess insurance coverage through Lloyds of London to supplement SIPC protection.
Deployment strategy 2: Funding rate arbitrage
All of Noon's collateral that is deployed to the Funding Rate Arbitrage strategy is held off-exchange, and settled using tri-partite settlement agreements. This ensures that all of our funds are isolated from black-swan events like exchange collapses.
We hold our funds with established web3 custodians like Ceffu, who hold billions of assets in custody for top web3 institutions the world over.
Future deployment strategies
Our approach to any future deployment strategies will start with asset custody and security at its core. If we cannot hold assets in a secure, segregated manner, we will find it difficult to deploy. This is because we are a stablecoin, and we understand that a single black swan event in a self-custodial environment can lead to irreparable damage to our protocol.
Last updated
Was this helpful?