In the world of asset tokenization, security, transparency, and trust is paramount. To ensure the safety and reliability of this innovative financial ecosystem, the SMART platform has implemented a series of robust protection layers with its dedicated infrastructure on the Blockchain/DLT ecosystem, built on a Permissioned Decentralized Coalition Blockchain. These layers not only foster trust but also provide a secure environment for users and sponsors to engage in the world of asset-backed tokens. In this blog, we will delve into SMART’s protection layers, examining the various components that make it a trustworthy and dependable platform.
SMART’s Protection Layers
Self-Custody Token Wallet
One of the central pillars of SMART’s protection is Self-Custody Token Wallet. In SMART, the users are custodians of their private key. To maintain investors’ autonomy, no third-party services are required to manage users’ private keys. The process of handling private keys is carefully structured to ensure compliance with regulatory standards and maintain user security.
Fiat Wallet
Just as digital assets require protection, so do their real-world counterparts. SMART’s Fiat Wallet is managed by a third-party banking service provider with the necessary licenses. This financial institution is responsible for handling the user’s fiat funds, guaranteeing that these assets are secure and managed by accredited professionals.
Approved Trustee
The Approved Trustee plays a crucial role in SMART’s protection layers. These trustees are carefully selected based on their relevant experience and expertise. They act as the custodian of the asset and facilitate enforcement of decisions on behalf of users and sponsors when instructed, adhering to the DAO (Decentralized Autonomous Organization) mechanism. This ensures that users’ interests are protected, and decisions are made with their best interests in mind.
Escrow Agent
Income generated from smart assets is a significant aspect of asset tokenization. The SMART platform entrusts a third-party banking service provider with the experience and credentials to manage these funds securely. Escrow agents handle secure transactions and execute instructions from the Trustee, reinforcing the safety of the entire process.
Due Diligence Agency
Smart investments demand scrutiny and examination. SMART engages third-party agencies with a global reputation to conduct rigorous technical, legal, and financial due diligence for each asset. This in-depth analysis ensures that assets available on the platform are thoroughly vetted and reliable for potential investors.
Authorized Brokers
Authorizing brokers play a pivotal role in enabling the trading of Smart Tokens (ST) for users. These individuals or organizations facilitate the transaction process, ensuring that users can trade their assets seamlessly and securely.
Rating & Valuation Agency
Investors need reliable and unbiased assessments of asset values. SMART employs third-party globally reputed agencies to provide fair and accurate ratings and valuations for each asset. This transparency is essential for informed investment decisions, contributing to SMART’s credibility.
Investment Banker
Investment bankers with global reputations, relevant experience, and certifications are an integral part of SMART’s protection layers. They prepare the Investment Memorandum (IM), which includes critical information such as risk disclosure, terms and conditions, reports, and title documentation. Their role is vital in ensuring that every investment opportunity is thoroughly examined and that potential risks are clearly communicated to investors.
Conclusion
SMART’s Protection Layers are the cornerstones of a secure, transparent, and trustworthy platform for asset tokenization. Each component, from the Token Wallet to the Investment Banker, plays a vital role in safeguarding users and sponsors alike. Through these protective layers, SMART aims to redefine the way we invest in assets, making it more secure, accessible, and efficient.
