Overview
RWA tokens represent claims on real-world assets held by custodians. Understanding the custody chain is essential for assessing the security of RWA collateral.Custody Architecture
Approved Custodians
Backed Assets
Security Features:
- Segregated client accounts
- SIPC insurance (up to $500k per account)
- Regular third-party audits
Ondo Finance
Security Features:
- Bankruptcy-remote structure
- US Treasury direct holdings
- Institutional-grade custody
Paxos
Security Features:
- Physical gold bars (numbered, serialized)
- Multiple vault locations
- Full insurance coverage
Due Diligence Process
Before approving an RWA token, Centuari verifies:1
Legal Review
- Corporate structure
- Regulatory licenses
- Terms of service
- Redemption rights
2
Custody Verification
- Custodian identity and regulation
- Segregation of assets
- Insurance coverage
- Bankruptcy remoteness
3
Operational Review
- Minting/redemption process
- Price feed sources
- Incident history
- Disaster recovery
4
Technical Audit
- Smart contract security
- Admin key management
- Upgrade mechanisms
- Oracle integration
Redemption Flow
If needed, RWA tokens can be redeemed for underlying assets:- Backed (Stocks)
- Ondo (Treasuries)
- Paxos (Gold)
1
Initiate Redemption
User requests redemption through Backed portal
2
Issuer KYC
Must pass Backed’s KYC requirements (this is the issuer’s process, not Centuari’s)
3
Token Burn
Tokens burned on-chain
4
Stock Transfer
Underlying shares transferred to user’s brokerage
5
Settlement
T+2 settlement for US equities
Centuari’s Role
Centuari does not custody underlying assets. Our role:Risk Mitigation
Issuer Failure
If an RWA token issuer becomes insolvent:- Bankruptcy-Remote Structure: Most issuers use SPVs that protect assets
- Priority Claims: Token holders have priority claim on underlying
- Protocol Response: Asset immediately removed from collateral list
- Insurance: Protocol insurance fund covers shortfall
Custody Failure
If a custodian fails:- Segregated Accounts: User assets not commingled with custodian assets
- Insurance Coverage: SIPC (securities), Lloyd’s (gold)
- Recovery Process: Coordinated through issuer
Oracle Manipulation
Price feed attacks are mitigated by:- Multiple Sources: Chainlink aggregates multiple data providers
- Deviation Limits: Large single-block moves rejected
- TWAP Fallback: Time-weighted average resists manipulation
- Circuit Breakers: Trading halted on extreme moves
Monitoring & Alerts
Centuari continuously monitors custody health:Recent Incidents
Transparency: We report any custody-related incidents affecting supported assets.
No incidents to report for currently supported assets.
Integration Requirements
For new RWA token issuers seeking integration:Technical Requirements
- ERC-20 compliant token contract
- Audited by reputable firm
- Chainlink price feed or equivalent
- On-chain liquidity > $1M
- Bridge to Arbitrum (or native deployment)
Legal Requirements
- Regulated entity or clear legal wrapper
- Qualified custodian for underlying
- Regular third-party attestations
- Clear redemption terms
- Insurance coverage documentation
Operational Requirements
- 6+ months operating history
- No material incidents
- Responsive team for integration
- Public documentation
Partner With Us
RWA token issuers interested in integration can contact our partnerships team