BTC Proxy
  • BTC Proxy Documentation
  • Getting Started
    • What is BTC Proxy?
    • Current Challenges
    • Features
    • The Proxy Relay
    • BTC Proxy Advantages
    • Use Cases
    • User Interface & Navigation
    • On-Chain Transfer Restrictions
    • Fees
    • Minimizing Transaction Risks
  • Minting
    • How to Mint Video
    • What is Minting?
    • Minting Sequence
    • BTC Proxy Mint Interface
    • How to Mint?
  • Redeeming
    • How to Redeem Video
    • What is Redeeming/Burning?
    • Burning Sequence
    • BTC Proxy Redeem Interface
    • How to Redeem?
  • Custody
    • What is Custody?
    • Custodian Wallet Setup
    • Transferring Funds from Cold to Hot Wallets
    • Insured Custody
    • Regulated
    • Integration
  • PRXY Token
    • What is PRXY Token
    • Tokenomics
    • Functions of PRXY
    • Allocation
    • Roadmap
    • Legally Binding
  • BTC Proxy DeFi
    • Bitcoin Farming
    • Compound Staking
    • Treasury Bonds
    • Programs
    • Redux
  • Contract Addresses
Powered by GitBook
On this page

Was this helpful?

  1. Custody

Regulated

Explains the concept of regulation for custodians of asset-backed tokens

Custodians of asset-backed tokens need to be licensed to hold the asset. This license may vary based on the asset and geographical jurisdiction of the custodian. Custodians must also prove reserves regularly given that a lack of 1:1 backing would undermine the whole system. KYC and AML restrictions also apply to users engaging in asset-backed tokens. These restrictions need to be enforced at the time of purchase, redemption, or transfer of tokens.

PreviousInsured CustodyNextIntegration

Last updated 4 years ago

Was this helpful?