Applicant information
Name: Backed (the brand name of Backed Finance AG, parent company and tokenizer, and Backed Assets (JE) Limited, securities issuer)
Address (Headquarters):
Backed Finance AG: Baarerstrasse 14, Zug, 6300, Switzerland
Backed Assets (JE) Limited: First Floor, La Chasse Chambers, Ten La Chasse, St. Helier, Jersey, JE2 4UE
Country:
Tokenizer: Switzerland
Issuer: Jersey Channel Island , UK Crown Dependency
Website: https://backed.fi/
Primary Contact Name:
Name: Gurvinder Lawrence-Sandhu
Title: Head of Operations
Country: UK
Email, Telegram, Forum, & other methods of contact:
TG: GuvSandhu_1
Email: Guv@backed.fi
Key Information
Backed specializes in tokenizing publicly tradable securities, issuing fully compliant MiFID financial products that are both permissionless and fully backed by the underlying assets. We offer a variety of investment products and have the capability to tokenize most publicly traded securities available on Traditional Finance (TradFi) exchanges. All our products are natively offered on Arbitrum and can be issued promptly.
If the Arbitrum Foundation selects Backed as a provider, we are eager to collaborate with the protocol to tokenize any ETF or security deemed suitable for the protocol treasury diversification, if such a product is not already offered by us.
Regarding portfolio management for the Arbitrum treasury, given the specification of a Stability allocation, we propose diversifying holdings among several fixed-income products to construct an extremely low volatility portfolio.
We propose a mix of USD and EUR exposure, using the following ETFs:
Optional diversification routes:
In a portfolio which has a medium or long investment horizons, allocations to equity-based products can offer significant Upside. In that respect, we could offer bCSPX, a product which follows the most common index, the S&P500.
Expected Yield:
It’s crucial to recognize that past performance doesn’t guarantee future results, particularly in a volatile central bank rate environment. That’s why we recommend allocating some funds to indexes and corporate bonds for long-term investments. While US TBills offer high liquidity, their upside potential is limited, making them typically only a portion of a well-diversified portfolio. It’s also worth considering Euro-denominated products to hedge against the purchasing power of the DAO outside the US.
Minimum/Maximum transaction size:
For both issuance and redemption of existing products: Minimum 5000 USD, no maximum.
For issuing a new dedicated product, we would seek a guarantee for a minimum purchase of $5M USD.
Current AUM for issuer: $32.8M
Volume of transactions LTM: $89,073,893 across 228 transactions
Source of first-loss capital: tokens are fully backed by the underlying. As there is neither leverage nor any downside protection, no first-loss capital is required.
Basics and Background
1. How will this investment improve Arbitrum’s RWA ecosystem?
The addition of Backed Finance’s tokenized fixed income products to Arbitrum’s RWA ecosystem will provide a low-risk, stable source of yield generation. Assets like the bIB01, bZPR1, bERNX, and bERNA offer consistent, predictable returns through their underlying exposure to government bonds and investment-grade corporate debt. This reliable yield can be reinvested into other parts of the Arbitrum ecosystem, supporting the growth and development of new protocols, applications, and services. By incorporating these tokenized fixed income products, Arbitrum can establish a sustainable source of funding for its broader ecosystem.
2. Identify key management personnel and individual experience. Also include third parties utilized for managing assets and their qualifications.
Founders and team are crypto and TradFinatives. Formerly, Mercado Bitcoin, 21shares, SumUp, Coinbase , Jane Street.
Roberto Klein: Co-founder - Linkedin
Roberto is a co-founder and board member at Backed Finance AG, overseeing finance, regulatory and legal aspects of the business. He holds an M.Sc in Physical Electronics as well as an MBA. With a career spanning over two decades, he has managed financial and business strategy across multiple technological sectors and international markets.
Adam Levi: Co-founder - Linkedin
Adam is a co-founder and board member at Backed Finance AG. He holds a PhD in Theoretical Physics from Technion. Adam spearheads business development efforts and partnerships as well as technology and investor connections.
Yehonatan Goldman: Co-founder - Linkedin
Yehonatan co-founded Backed Finance AG, where he leverages his expertise in blockchain technology, branding, and project management. He previously served as COO at DAOstack Technologies, scaling the team and leading its marketing efforts.
Yotam Katznelson: CTO & COO - Linkedin
Yotam is a seasoned engineer with extensive experience in both traditional finance and blockchain technology. As the CTO & COO at Backed Finance, Yotam orchestrates the technical vision and oversees operational strategies. His prior roles include serving as CTO at 21Shares, where he led a significant expansion of the engineering team and was pivotal in developing a robust financial back-office system that supported the company’s growth from $10M to $3B in assets under management. Additionally, at Securitize, he was responsible for building a white-label platform for security tokens on the Ethereum blockchain.
Giorgio Giuliani: Head of product - Linkedin
Giorgio has over a decade of experience in fintech, where he has led high-performing product teams in major financial hubs such as London and Berlin. He joined Backed in 2022 as Head of Product.Previously, Giorgio led product development at SumUp and N26, focusing on core banking systems and innovative financial solutions like BNPL features, showcasing his ability to enhance product offerings and drive user engagement effectively.
Jerome Dickinson: Head of Legal/AML - Linkedin
Jerome brings over a decade of specialized legal experience in financial and crypto law to Backed. As Head of Legal and AML, he has played a pivotal role in navigating regulatory landscapes and ensuring compliance with evolving legal standards, particularly in the European Union. His background includes significant positions at major law firms and a board member role at Blockchain for Europe.
Gurvinder Lawrence-Sandhu: Head of Operations - Linkedin
Gurvinder is an expert in operations management with a deep understanding of risk management processes. At Backed, he oversees all financial operations aspects. His prior experience at Coinbase and various fintech startups has equipped him with the skills to effectively manage complex operations and scale business processes.
Bernardo Quintao: Head of Business Development - Linkedin
Bernardo is a dynamic business development leader with a robust background in the cryptocurrency and financial sectors. At Backed, he drives international business development, leveraging his extensive network and expertise to foster strategic partnerships and expand the company’s market presence. His previous roles include managing a regulated crypto fund and pioneering the development of tokenized securities in Latin America.
3. Describe any previous work by the entity or its officers/key contributors similar to that requested. References are encouraged.
Backed and its team have extensive experience building tokenized financial products and integrations across traditional finance and decentralized ecosystems. References from our partners and clients can be provided upon request.
Our team members bring expertise from industry-leading firms such as 21Shares, Coinbase, Securitize, and others. We have successfully launched and managed compliant digital asset offerings, crypto funds, and blockchain-based investment products across multiple jurisdictions.
Notably, we have partnered with leading DeFi protocols and platforms to integrate our tokenized products seamlessly into their ecosystems. Our work with AngleProtocol allowed them to offer USDA and EURA, backed by Backed products. We were also the first to list real-world asset tokens on MorphoProtocol, with our US T-Bill product bIB01.
Beyond these examples, our team has a proven track record of navigating complex regulatory landscapes, managing operational risks, and scaling innovative financial products globally.
We would be happy to coordinate references and introductions to our existing partners, investors, and clients, who can attest to our expertise and capabilities in this domain.
4. 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.
5. Describe any conflicts of interest for your entity and key personnel.
None
5. Insurance coverages, guarantees, and backstops Name of insurer or guarantor Per incident coverage Aggregate coverage
Custodian bank, in which collateralized assets are deposited, is a licensed Swiss bank. No insurance exists as of the issuer.
6. Historical tracking error in your proposed product, or similar to that being proposed Product 2024 YTD 2023 2022 2021
Tracking errors between the index and the ETF following it is based on the ETF’s performance and management fees, Backed has no tracking error vis-a-vis the ETF.
7. Brief reason for above tracking error
Tracking errors between the index and the ETF following it is based on the ETF’s performance and management fees, Backed has no tracking error vis-a-vis the ETF.
8. Please describe any experience your firm has in working with decentralized organizational structures
Given that the bTokens are permissionless, several DeFi protocols have integrated the tokens into their ecosystem, including Morpho and Angle.Money.
9. What is your entity’s current assets under management, assets held in trust, total value locked, or equivalent metric for your legal structuring?
Currently, there are over $30M USD of bTokens outstanding, the value varies with issuances and redemptions. Total transaction volume of the bTokens is over $96M USD .
10. How many of these assets held are present on Arbitrum One, if any?
At the moment, a very small amount of bTokens (under USD$1k) have been issued on Arbitrum as test transactions.
Plan design
1. 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.
As per the portfolio management for the Arbitrum treasury, we propose that Arbitrum considers an allocation diversifying the holdings between several fixed-income products.
We propose a mix of USD and EUR exposure, using the following ETFs:
Optional diversification routes:
A portfolio which has a medium or long investment horizons, allocations in equity-based products can offer significant Upside. In this regard, we could offer bCSPX tokens, which track the most common index, the S&P 500.
bERNX - Backed ERNX € Ultrashort Bond. Corporate euro-denominated bond ETF.
The euro-denominated corporate bond is useful for diversification from purely USD products. The fund seeks to track the performance of an index composed of Euro-denominated investment-grade corporate bonds.
Underlying Asset: iShares € Ultrashort Bond UCITS ETF
bERNA - Backed ERNA $ Ultrashort Bond. Corporate USD-denominated bond ETF.
The Fund seeks to track the performance of an index composed of US dollar-denominated investment-grade corporate bonds.
Underlying Asset: iShares $ Ultrashort Bond UCITS ETF
bZPR1 - Backed ZPR1 $ 1-3 Month T-Bill. Bloomberg TBill ETF.
The investment objective of the Fund is to seek to provide investors with a total return, taking into account both capital and income returns, which generally reflects the return of the Bloomberg US Treasury Bills 1-3 Month Index.
Underlying Asset: SPDR® Bloomberg 1-3 Month T-Bill UCITS ETF
bIB01 - Backed IB01 $ Treasury Bond 0-1yr. Short TBill ETF.
The fund seeks to track the investment results of an index composed of US Dollar denominated government bonds issued by the US Treasury, with remaining maturities between zero and one year.
Underlying Asset: iShares $ Treasury Bond 0-1yr UCITS ETF
bC3M - Backed GOVIES 0-6 Months Euro Investment Grade. Euro sovereign bond ETF
The fund invests in a portfolio of short-term euro-denominated government bonds issued by Eurozone countries, with maturities between 0 and 6 months.
Underlying Asset: AMUNDI ETF GOVIES 0-6 MONTHS EURO INVESTMENT GRADE UCITS ETF
bHIGH - Backed HIGH € High Yield Corp Bond. High Yield Corp Bond ETF
The fund invests in a portfolio of high-yield corporate bonds issued by companies domiciled in developed markets, with the goal of providing exposure to the euro-denominated high-yield corporate bond market.
Underlying Asset: iShares € High Yield Corp Bond UCITS ETF
bCSPX - Backed CSPX Core S&P 500. SP500 tracker ETF.
1Y return is 29.51%. Suitable for long-term holding (5+ years) to avoid market dips, and is usually a key part of portfolio growth. The fund seeks to track the performance of an index composed of 500 large cap U.S. companies.
Underlying Cumulative Return:
YTD 10.48% | 1 Year 29.51% | 3 Years 37.41% | 5 Years 98.56% | 10 Years 227.09%
Underlying Asset: iShares Core S&P 500 UCITS ETF USD
Underlying Net Assets of Fund - USD $82 Billion
2. Do investors have any shareholder, investor, creditor or similar rights?
Owners of bTokens have senior creditor rights over the collateralized underlying assets
3. 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.
bTokens are issued by Backed Assets (JE) Limited, incorporated in Jersey. Tokens are issued under license by the JFSC, the Jersey Financial and Securities regulator. The issuer is also AML licensed and regulated in Jersey.
In addition to the Jersey regulation, bTokens are MIFID financial products by virtue of having an approved EU prospectus, filed with the Liechtenstein FMA.
4. 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.
All Backed products are bankruptcy remote. bTokens are issued by an SPV, which is legally separated from Backed Finance AG, the tokenizer and the operator of the majority of employment activity.
A 1:1 ratio of underlying is maintained at all times. It is supervised by both a “proof-of-reserve”, which is published the collateralization status on-chain, and by an appointed security agent, which has the authority to seize the assets on behalf of token holders in case there is any deviation from the commitments the issuer has made.
5. 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 underlying assets which guarantee the bTokens are book entry securities held in custody by a licensed Swiss bank, and are therefore “off-balance-sheet”, namely they are not exposed to the financial situation of the custodian bank.
6. Does the Issuer issue more than one asset? If so, what is the priority relationship between different asset classes?
Backed issues a variety of products. Each product has a dedicated collateralized sub account with the custodian bank, which holds the assets of that specific product. There is no seniority difference between the different products, each product has primary claim to its collateral assets.
7. 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
.
Settlement for bTokens can be made with both Fiat (USD, CHF and EUR) and stablecoins (USDC, USDT, EURC, EURe).
Backed does not accept ARB tokens for issuances/redemptions, therefore conversion from ARB to stablecoin/fiat must be done separately.
Issuance:
- Investor sends USDC, USDT, USD, EURC, EURe, or EUR to Backed Assets (JE) Limited (Hereafter “Backed”) - (legal jurisdiction: Jersey)
- Backed Finance deducts the 20 bps issuance fee upfront from the investor’s funds
- Backed off-ramps the stablecoin or convert Fiat to the native currency of the underlying security through brokers such as Circle and B2C2 - (legal jurisdiction: Various, depending on offramping partner)
- Backed uses the Fiat to purchase the underlying security (for instance the IB01 ETF by iShares) from a broker or market maker such as Flowtraders (legal jurisdiction: various, depending on broker)
- Backed then issues the bTokens to the investor
Redemption:
- Investor send bTokens to Backed
- Backed sells the underlying security through a broker such as Flowtraders
- Backed deducts the redemption fee (currently 20bps) upfront from the sale proceeds
- In case the investor asked for Fiat settlement, it is sent to their bank account. In case of stablecoin settlement, Fiat is sent to onramping through a broker such as Circle or B2C2.
8. Describe anticipated tax consequences (if any) in transacting on the underlying and/or receipt of yield.
- bTokens, as issued by Backed, do not involve any inherent taxation.
- Backed performs transactions of the underlying with minimal financial impact. No tax is involved in such transactions.
- Taxes such as Capital Gains tax, Interest and Dividend tax etc might be applicable to the holders of bTokens. Such taxes depend on the jurisdiction of the token holder and can not be anticipated by Backed.
- Backed recommends that Arbitrum seeks professional tax advice to understand their specific tax obligations and reporting requirements related to investing in these products. Backed does not provide tax advice, as the tax treatment may vary based on individual circumstances and jurisdictional rules.
9. Describe the process and expected timeline for liquidation of assets, if given instructions to do so by Arbitrum governance.
General comment: Only onboarded customers of Backed can issue and redeem tokens with backed.
Redemption:
- Backed onboarded customer sends bTokens to Backed
- Backed Sells the underlying security (T+1 settlement)
- Fiat is sent to an onramping broker. Settlement times are between T0 and T+3 business days
- When stablecoin settlement arrives, it is immediately dispatched to the redeeming customer (T0)
10. 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?
There is neither commitment for over-collateralization nor expected under-collateralization. The collateralization is 1:1. For each token, exactly 1 underlying.
11. 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 of all the different assets we are proposing:
The underlying assets for Backed Finance’s tokenized fixed income products are highly liquid and stable, benefiting from the immense liquidity and trading volumes in their respective markets.
For instance, the iShares € Ultrashort Bond UCITS ETF (ERNX) and iShares $ Ultrashort Bond UCITS ETF (ERNA) track indices composed of investment-grade corporate bonds denominated in euros and US dollars, respectively. While the net assets of these ETFs are in the billions (€3.1B and $1.3B), the liquidity of the underlying corporate bond markets is substantially larger.
Similarly, the SPDR® Bloomberg 1-3 Month T-Bill UCITS ETF (ZPR1) and iShares $ Treasury Bond 0-1yr UCITS ETF (IB01), with $453M and $14.9B in net assets, are underpinned by the highly liquid and stable US Treasury market, which has a total market capitalization exceeding $1 trillion.
Even the iShares Core S&P 500 UCITS ETF (CSPX), a $82B equity ETF, benefits from the immense liquidity of the large-cap US stock market, with the S&P 500 components regularly trading billions of shares daily.
The large size and trading volumes of these underlying fixed income and equity markets ensure ample liquidity for the respective tokenized versions offered by Backed. This liquidity, combined with the stability of high-quality assets like government bonds and investment-grade corporates, provides a solid foundation for Backed Finance’s tokenized products, ensuring efficient pricing and reliable redemption processes.
Settlement times:
In terms of settlement times, Backed settlement times ranges from T+1 to T+3 (Business days) , we aim to settle fiat/stablecoin with clients on T+1 (current stats show that we settle T+1 80% of the time)
This rapid settlement, with the majority occurring within 1 business day, allows Backed to deliver the fiat or stablecoin proceeds to investors in the bTokens in a timely manner. The short settlement window minimizes the exposure to market movements between the sale of the underlying assets and the repayment to investors.
12. If relying on the blockchain for any of the transactional flows, please describe any blockchain derived risks and mitigations.
No reliance on blockchain for the flows except token contracts, that are as close to standard as possible.
13. Does the product rely on any derivative product (swaps,OTC agreements?)
No, all products are based on the original underlying security.
Products are issued as debt certificates under EU law. More detailed information can be found in our EU prospectus. https://assets.backed.fi/legal-documentation
14. List all the 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
1. Incore Bank AG - Swiss regulated Custodian - https://www.incorebank.ch/
2. Circle - Conversion broker - https://www.circle.com/
3. B2C2 - Conversion broker - https://www.b2c2.com/
4. Flow Traders - Securities broker - https://www.flowtraders.com/
5. Security Agent Services - Securities Agent - https://www.saservice.com/
15. Can you explain how risk management (inv and operational) is being done? Can you provide a copy of your risk management policy?
Operational Risk Management:
Backed manages operational risks by maintaining strict risk management policies that include detailed processes and continuous employee training.We limit access to sensitive operations, client’s information, and financial accounts to authorized personnel only… This said access is monitored and controlled through secure systems that require multiple approvals before any critical operation can be executed, ensuring additional safety and accountability.
For the purpose of on-chain operations, Backed has partnered with a leading MPC provider and implemented multiple policy layers to ensure that at each step, only authorized personnel are able to make state changes and only after multiple signers given their approval for the action.
Compliance and Reporting:
Backed ensures consistent compliance and operational integrity by conducting regular audits and reconciliations with our custodians and other third-party service providers.
Security/Smart Contracts:
Backed places a strong emphasis on the security of our tokenization platform and smart contract integrity. To ensure the highest standards of safety, all of our smart contracts undergo rigorous audits conducted by reputable third-party security firms. These audits are designed to identify and rectify any vulnerabilities before the contracts are deployed, providing an extra layer of security. Additionally, we utilize a multi-signature approval process for all critical operations, which requires several trusted members of our team to approve any significant changes or transactions. This method greatly reduces the risk of unauthorized access and enhances the overall security of our operations.
Performance reporting
1. What are your proposed performance benchmarks? If this is substantially different from the underlying assets, please explain why.
The performance benchmarks for Backed’s tokenized products will be directly aligned with the benchmarks used by the respective underlying ETFs or funds. As the tokenized versions are designed to track the performance of the physical products on a 1:1 basis, using the same benchmarks ensures consistency and transparency.
For example, a tokenized ETF tracking a broad equity index like the S&P 500 would use the S&P 500 Index as its benchmark. Similarly, a tokenized fixed-income fund would benchmark against the appropriate bond index or yield curve.
There is no need for substantially different benchmarks, as the goal is to provide investors with exposure to the same underlying assets and performance as the physical ETFs or funds. Using the industry-standard benchmarks allows for easy comparisons and evaluation of how well the tokenized products are tracking their respective underlying investments.
2. Describe the content, format, preparation process, and cadence of performance reports. This should include proof of reserves, if appropriate. Please include a sample report.
The performance reports for Backed’s tokenized products will closely mirror the reporting provided by the respective issuers of the underlying ETFs or funds. Investors can refer to the regular performance reports published by the asset managers, which typically include details on net asset value, total returns, portfolio composition, and other key metrics.
Additionally, Backed utilizes Chainlink’s Proof of Reserve solution to provide transparent and trust-minimized confirmation of the full collateralization of the tokens by the underlying assets.
Proof of reserves link
3. Who provides the performance reports in respect of the underlying assets?
The performance reports for the underlying ETFs or funds are provided by the respective asset managers who issue and administer these products. For example, iShares (BlackRock) provides performance reports for their ETFs, while Amundi and other asset managers are responsible for reporting on their respective funds.
As the issuers and administrators of the physical investment products, these asset managers are responsible for compiling and publishing regular performance reports, including details on net asset value, returns, portfolio holdings, and other key metrics.
Backed will leverage these established performance reporting frameworks from the underlying product issuers to ensure transparency and alignment between the tokenized versions and their respective physical counterparts.
A sample performance report for the IB01 ETF can be found on the iShares website .
4. Describe any formal audit process and timing of such audits.
- Regulator audits - The Jersey JFSC, the competent authority that regulates the issuer, does not perform yearly audits, but rather audits both Financial and AML on its own selected schedule.
- Security Agent - the function of Security Agent is to monitor the existence of full collateral of underlyings for the issued products. The Security Agent has full viewing rights to the bank account, and gets a quarterly report from the issuer as to the status of issuance and collateral.
- Proof of Reserve - the issuer contracts The Network Firm (TNF) and Chainlink to perform and publish proof or reserve onchain, on a continuous basis, to selected products.
- Smart contracts audits - All production contracts are fully audited by external and independent competent service providers. All audits are published in Backed public repo: GitHub - backed-fi/audits
- Platform and infrastructure audits - On an annual base, Backed is partnering with external audit company to review the application and the infrastructure, to ensure best practices are being used and no blindspots are in existence
- Financial Auditors - The issuer is audited by Bracken Rothwell Limited of 2nd Floor, The Le Gallais Building, 54 Bath Street, St Helier, Jersey, JE1 1FW
Pricing
1. Provide a copy of your standard contract, or one similar to what is being proposed here.
All terms and conditions are defined in the issuer’s public prospectus, which can be found in the following address:
2. Fee summary: Inclusive of the full scope of services requested. Product Fee schedule If asset based Fee calculation for our plan if asset based Annual fee if flat fee Any other fees (including redemption or minting fees)
-
Issuance and Redemption Fees:
- Backed Finance charges a 20 basis points (0.20%) fee on the issuance of the bTokens tokens.
- Backed Finance also charges a 20 basis points (0.20%) fee on the redemption of the bTokens tokens.
- There are no ongoing AUM (assets under management) fees charged by Backed Finance.
-
Product Management Fees:
- The underlying which are ETFs, all issued by reputable issuers such as iShares,Amundi, State Street and others, charge there own fees described in the table at the top of this proposal.
3. Describe frequency of fee payment and its position vis-a-vis payment priority compared with other expenses (i.e., cash waterfall)
- All currently issued products only include issuance and redemption fees, no ongoing management fees are charged.
- Issuance and redemption fees are deducted upon transacting with the issuer. They become final when the issuance/redemption is complete, namely when the settlement is delivered to the client.
- All operational expenditures such as custody fees, brokerage, on/off ramping etc are covered by the issuer.
Smart Contract/Architecture
1. How many audits have you had and name of auditors? Please provide a copy of reports.
We had 3 smart contracts audits conducted with Omega. The audits are publicly available on our github
2. Is the project permissioned? If so how are you managing user identities? Any blacklisting/whitelisting features?
- The underlying assets are obviously permissioned, as they are TradFi securities. Issuance and redemption systems are also permissioned due to the requirement to be AML compliant.
- All of Backed tokens are by nature permissionless
- There is also a wrapped form of our tokens that only allows whitelisted addresses to interact with the token. Whitelisted addresses are managed by Backed. As long as users have KYC’d with Backed or Backed KYC partners, they will be added to the whitelist.
3. Is the product present on several chains? Are there any cross chain interactions?
Backed tokens are launched on 8 blockchains, Ethereum, Polygon, Arbitrum, Avalanche, Gnosis, Fantom , BSC and Base. No cross chain interactions.
4. Are the RWA tokens being used in any other protocols? Please describe the various components of the ecosystem
- The bTokens are used by Angle as the basis for USDA stability and yield as well as for EURA (EUR stablecoin) .
- There are Morpho blue pools with bTokens as part of a pair, they can be used as collateral to take advantage of low interest rate loans
- bTokens being permissionless, they might also be used in other DeFi protocols.
5. How are trusted roles/admins managed in the system? Which aspects of the solution require trust from users?
- All aspects related to collateral management governed by the Board of the issuer. All banking operations require multiple signatories, which vary according to amount and other factors.
- Crypto operations are secured by several overlayed systems, which include MFAs, MPCs and more. The issuer does not disclose the security measures which are used.
6. Is there any custom logic required for your RWA token? If so please give any details.
No.
Supplementary
1. Please attach any further information or documents you feel would help the screening committee or ARB tokenholders make an informed decision.
DISCLAIMERS
Backed’s products are only sold directly to qualified investors and licensed resellers.
Backed DOES NOT sell its tokens to U.S. Persons or for the account or benefit of U.S. Persons, and tokens are not marketed, offered, or solicited in the U.S. or in any other prohibited jurisdiction.
Backed’s products are issued according to a base prospectus that can be found at Access Restricted - Backed Assets
The approval of the prospectus should not be understood as an endorsement of the securities issued or offered.
Potential investors in Backed’s products are advised to read the prospectus before making an investment decision in order to fully understand the potential risks and rewards with the decision to invest in the securities.