Applicant information
Name: Solomon Global Select Fund SPC, a Cayman Islands segregated portfolio company
Address (Headquarters):89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands
City, State, Postal Code: Camana Bay
Country: Cayman Islands
Website: www.ryt.finance
Primary Contact
Primary contact Name: Frank Chen
Title: Vice President
Country: Singapore
Email, Forum, & other methods of contact: frank.chen@spw.com.hk
Telegram: @franker3
Key Information
Expected Yield: the underlying asset of ChinaAMC Select Money Market Fund is expected to generate a yield of 4.62% APR.
Expected Maturity: NA
Underlying asset: ChinaAMC Select USD Money Market Fund
Minimum/Maximum transaction size: 100,000 USDC minimum, Minimum Subsequent deposit is 1 USDC, minimum subsequent withdrawal is 1 USDC
Current AUM for product: Initial scale of $107M for tokenized ChinaAMC MMF recently launched in March
Current AUM for issuer: $134M
Volume of transactions LTM: $134M (it’s been recently launched in Mar 2025)
Source of first-loss capital: None
Basics and background
- How will this investment improve Arbitrum’s RWA ecosystem?
- Bringing Institutional Yield On-Chain
Our tokenized money market funds allow institutional investors and DeFi users to earn real yields (~4.6% APR) without off-ramping USDC.This bridges the gap between TradFi and DeFi by enabling stable, predictable returns within Arbitrum.
- Deepening Liquidity & Enhancing Collateral Utility
By deploying $RYT (our tokenized Money market fund) into Arbitrum-native lending protocols (e.g., Aave, Radiant, Morpho), users can borrow against real-yield collateral, improving capital efficiency. $RYT’s low-risk nature makes it an ideal collateral asset, increasing total value locked (TVL) and attracting more institutional liquidity to the ecosystem.
- Expanding Perpetuals & Structured RWA Products
Listing $RYT as a perpetuals trading asset on platforms like GMX, Gains Network, or Drift allows traders to hedge and speculate on RWA-based yields.This diversifies Arbitrum’s financial instruments, creating new DeFi trading strategies beyond traditional crypto assets.
- Strengthening Arbitrum’s Position as the Leading RWA L2
With more composable RWA-backed assets, Arbitrum differentiates itself as the go-to Layer 2 for institutional-grade financial products.The integration of $RYT enables DAOs, hedge funds, and corporate treasuries to earn regulated, real-world yields in a secure, blockchain-native environment.
- Identify key management personnel and individual experience. Also include third parties utilized for managing assets and their qualifications.
- Peter Lok, Head of brokerage
Founder of Solowin Holdings, overseeing broker-dealer, investment banking, and asset management operations. Led Solomon JFZ to become Asia’s largest public fund holder of Bitcoin and Ethereum assets. Launched Asia’s first tokenized fund with ChinaAMC, Standard Chartered Bank and Libeara. Spearheaded participation in Hong Kong Monetary Authority’s Project Ensemble with HSBC, Hang Seng Bank and OSL
- John Wong
John has 35+ yrs experience in commercial banking, whereby 9+ yrs at Hang Seng Bank, Head of Global Payments Solutions and Head of Payments and Cash Management and 25+ yrs at Standard Chartered Bank. He was awarded Leading Practitioner in Transaction Banking in 2024 and The Asian Banker Transaction Banker of the year 2018 by The Asian Banker
- Frank Chen, Head of product
Frank is an experienced tech entrepreneur, for both TradFi and crypto domains alike. He pioneered the Bitcoin ecosystem for Taproot Assets launchpad development. Prior to crypto, he worked for Alibaba and Apple for data intelligence and new product operations.
- Describe any previous work by the entity or its officers/key contributors similar to that requested. References are encouraged.
As described above
- Has your entity or its officers/key contributors been subject to an enforcement action, criminal action, or defaulted on legal or financial obligations? Please describe the circumstances if so.
No
- Describe any conflicts of interest for your entity and key personnel.
NA
- Insurance coverages, guarantees, and backstops Name of insurer or guarantor Per incident coverage Aggregate coverage
NA
- Historical tracking error in your proposed product, or similar to that being proposed Product 2024 2023 2022 2021
NA
- Brief reason for above tracking error
NA
- Please describe any experience your firm has in working with decentralized organizational structures
Our project has extensive experience collaborating with decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) platforms. We have partnered with various DeFi protocols to integrate real-world assets (RWAs) into their ecosystems, facilitating seamless access to traditional financial instruments within decentralized frameworks. This collaboration includes developing smart contracts, ensuring compliance with decentralized governance models, and enhancing the interoperability of our products with decentralized platforms.
- What is your entity’s current assets under management, assets held in trust, total value locked, or equivalent metric for your legal structuring?
Current AUM: As of now, our project manages approximately $107 million in assets, encompassing ChinaAMC tokenized MMF
Assets on Arbitrum One: Currently, we do not hold assets on Arbitrum One. However, we are actively exploring opportunities to deploy our tokenized products on the Arbitrum network to enhance accessibility and liquidity.
- How many of these assets held are present on Arbitrum One, if any?
NA
Plan design
- Please describe your proposed product, including a description of the underlying assets and, if more than one asset, the proposed allocation among assets and general investment guidelines. Where appropriate, include targeted maturity mix and credit quality. Attach supplementary documents as appropriate.
Proposed Product: $RYT is a Money Market Fund, providing investors with stable and secure yield opportunities.
Underlying Assets: The fund primarily invests in USD Money Market Fund
Investment Guidelines: The fund adheres to strict investment criteria, focusing on high-quality, money market fund to preserve capital and provide liquidity.
Do investors have any shareholder, investor, creditor or similar rights?
- Describe the legal and contractual structuring for your product including regulatory bodies overseeing your business and the product and identifying all legal jurisdictions interacting with your product. Attach supplementary documents as appropriate.
Investors in $RYT tokens hold proportional ownership in the underlying money market fund. They have rights to redeem their tokens for the equivalent value in U.S. dollars, subject to the fund’s terms and conditions. Investors do not possess voting rights or influence over the fund’s investment decisions.
- Would Arbitrum’s assets be bankruptcy remote from your own entity and its officers/key contributors? If so, please explain the legal and contractual basis. On a confidential, non-reliance basis, provide any third party legal opinions to support the conclusions.
Arbitrum’s assets invested in $RYT are safeguarded through a bankruptcy-remote structure. The underlying assets are held in a custodial account separate from the firm’s assets, ensuring that investors’ funds are protected even in the unlikely event of the firm’s insolvency.
How are Arbitrum’s assets protected vis-a-vis the bankruptcy of the brokerage or applicable financial institution (e.g., bank deposit insurance, securities insurance, etc.)?
The fund’s assets are held with a qualified custodian by Standard Charted Bank (Hong Kong). Additionally, investments in the Money Market Fund are issued by ChinaAMC and custodized by Bank of China International Prudential.
Does the Issuer issue more than one asset? If so, what is the priority relationship between different asset classes?
Currently, the issuer only issues $RYT, a tokenized money market fund (MMF). If additional assets are issued in the future, they will be structured independently, ensuring no cross-collateralization between different asset classes. This guarantees clear risk separation and investor protection.
Provide a detailed cash flow diagram that shows the flow of funds from ARB/Fiat conversion, investment in underlying asset, payment of expenses, sale of underlying asset, and repayment (Fiat/ARB conversion), including the counterparties and legal jurisdictions involved.
Below is an overview:
- ARB/USDC Conversion: Investors convert ARB to USDC via supported Arbitrum-native DEXs (e.g., Uniswap, Balancer, Curve).
- Subscription to $RYT: USDC is deposited into a custodial account managed by a regulated fund administrator (Standard Chartered Bank).
- Investment Allocation: Funds are invested in ChinaAMC Select Money Market Fund, managed under Hong Kong’s Securities and Futures Commission (SFC) oversight.
- Yield Accrual & Fees: MMF yield is distributed to token holders, net of management fees.
- Redemption & ARB Conversion: Investors redeem $RYT for USDC, which can be converted back to ARB on-chain if required.
- Legal Jurisdictions: Cayman (fund domicile), Arbitrum (on-chain transactions),
Describe anticipated tax consequences (if any) in transacting on the underlying and/or receipt of yield.
- Investors may be subject to capital gains tax or income tax based on local jurisdictional regulations.
- $RYT yield is derived from USD MMFs, which may be tax-exempt for certain investors.
- It is recommended that investors consult a tax professional regarding cross-border DeFi taxation.
Describe the process and expected timeline for liquidation of assets, if given instructions to do so by Arbitrum governance.
- Governance Vote: Arbitrum governance submits a proposal for liquidation.
- Redemption Request: Authorized fund administrators redeem MMF holdings for fiat within 24-48 hours.
- USDC On-Chain Settlement: Fiat proceeds are converted into USDC and transferred to the Arbitrum network.
- Investor Payouts: Users redeem USDC for ARB or stable assets as per governance-defined parameters.
- Completion: Full liquidation within 3-5 business days, ensuring minimal disruption to liquidity.
What amount of first-loss equity will Sponsor provide to ensure over-collateralization, how is the first-loss equity denominated, and what is the source of capital?
- The fund does not use a traditional first-loss structure as its underlying MMF assets are government-backed and low-risk.
- Instead, capital reserves are held within the issuer’s treasury to absorb any operational contingencies.
- The first-loss structure could be introduced in a structured tranche model for enhanced institutional participation.
Describe the liquidity and stability of the proposed underlying assets, including anticipated settlement times from the sale of the underlying to the repayment of ARB.
- Liquidity: USD MMFs are among the most liquid financial instruments, with a daily redemption structure.
- Settlement Time: Typically T+1 for USD MMFs
- Redemption Risk: Due to the high credit quality of underlying assets, redemption risk is minimal.
If relying on the blockchain for any of the transactional flows, please describe any blockchain-derived risks and mitigations.
Risks:
- Smart Contract Vulnerabilities: Risk of exploits or bugs.
- Network Congestion: Could delay redemptions during peak transaction times.
- Oracle Manipulation: If price feeds are compromised, NAV calculations could be affected.
Mitigations:
- Regular third-party security audits.
- Multiple oracles for price feeds to ensure redundancy.
- Multi-signature governance for contract upgrades to prevent unauthorized access.
Does the product rely on any derivative product (swaps, OTC agreements)?
No, $RYT only invests in direct money market instruments without derivative exposure. However, hedging options may be explored in the future for enhanced capital efficiency.
List all third-party counterparties linked to your assets including and not restricted to prime broker if any, custodian, reporting agent, banks for derivatives or loans and provide primary contact details for the third-party counterparties.
- Custodian: Standard Chartered Bank (Hong Kong)
- Fund Manager: Solowin (BVI)
- Fund Administrator: Standard Chartered Bank (Hong Kong)
- Auditor: Rankin Berkower (Cayman) Ltd
Can you explain how risk management (investment and operational) is handled? Can you provide a copy of your risk management policy?
Our risk management strategy includes:
- Daily portfolio monitoring for NAV stability.
- Operational risk assessment using compliance frameworks aligned with Cayman Law
- Redemption stress tests conducted regularly.
- Third-party audits & regulatory oversight.
- Risk management policy available upon request.
Performance Reporting
Proposed performance benchmarks:
- Historical 30-day and 90-day MMF yield comparisons.
Content & Cadence of Performance Reports:
- Monthly reports published on-chain and off-chain.
- Reports include NAV calculations, portfolio holdings, and APY metrics.
- Proof of Reserves conducted quarterly via third-party audits.
Who Provides Performance Reports?
- Fund administrator （Standard Chartered Bank (HK)) & independent auditing firms (Rankin Berkower(Cayman) Ltd).
Formal Audit Process:
- Audits conducted annually by a Tier 1 accounting firm.
Pricing & Fee Structure
- Management Fee: 0.15% annually.
- Redemption Fee: 0.10% (waived for strategic partners).
- On-Chain Transaction Fees: Gas costs apply.
Fee Payment Frequency:
- Fees are accrued daily .
Smart Contract / Architecture
- Security Audits: audit reports available upon request.
- Permissioned Access: Investors undergo KYC/AML verification before interacting with $RYT.
- Cross-Chain Interactions: Exploring expansion to Ethereum L2s
RWA Token Usage in Other Protocols:
- Actively seeking integrations with Aave, Radiant, GMX, and other lending & perps platforms.
Trusted Roles & Admin Management:
- Multi-sig governance for contract upgrades.
- Third-party custodial oversight ensures compliance.