Trust architecture

Where the asset sits, and who can move it

This page is maintained by Democratise to answer the questions allocators ask first: who holds the asset, who can transfer the token, how reserves are proven, and what happens if the platform disappears.

Shared responsibility

Democratise operates the issuance and servicing platform. Underlying assets are held by an independent licensed trustee for the benefit of token holders; digital assets are held by a third-party custodian. Investors remain responsible for their own eligibility, tax position and wallet security. Nothing here is a certification or an independent audit opinion.

Custody

Segregation at every layer

Legal

Licensed trustee

Perpetual Corporate Trust or Equity Trustees holds the underlying asset and security package on trust. Token holders are beneficiaries under a registered trust deed — independent of Democratise's own balance sheet.

Digital

Insured MPC custody

Zerocap and Zodia Custody hold platform-controlled keys under multi-party computation with institutional insurance. No single Democratise employee can move client assets.

Cash

Segregated trust accounts

Subscription and distribution money moves through segregated AUD trust accounts at an Australian ADI, reconciled daily against the register.

Verification

Proof of reserve

Every token in issue is reconciled against the asset held by the trustee, and the reconciliation is published.

Attestation frequency: Daily
NAV strike: Daily, independent
Register reconciliation: T+0
Independent audit: Annual
Valuation refresh: Semi-annual
On-chain publication: Hash + summary

Illustrative controls for a demonstration platform. Frequencies reflect the target operating model, not an audited outcome.

Transfer control

Permissioned by construction

Tokens are issued under ERC-3643 (Redbelly) or permissioned XLS-20 (XRP Ledger) — transfers to a non-whitelisted wallet fail at the protocol level, not at the interface.
Whitelisting is granted only after identity verification, sanctions screening and, where the holder is a foreign person, FIRB assessment.
Lock-ups, jurisdiction rules and maximum-holding caps are enforced as on-chain compliance rules, so a secondary trade cannot breach the offer terms.
Recovery: if a holder loses key access, the transfer agent can reissue to a replacement whitelisted wallet under the trust deed.

Regulatory perimeter

The Australian regime we build to

Requirement	How it is met	Status
Digital Asset Platform (DAP)	Authorisation sought under the Corporations Amendment (Digital Assets Framework)	In pathway
Tokenised Custody Platform (TCP)	Custody delivered through licensed third parties pending own authorisation	Outsourced
AFSL — dealing and advice	Authorisations for dealing in and arranging financial products	In pathway
AUSTRAC AML/CTF	Enrolled reporting entity programme, transaction monitoring and SMR obligations	Aligned
FIRB	Pre-screening of every foreign person and foreign-government investor before allocation	Operational
Privacy Act / APPs	Data minimisation, Australian data residency for identity records	Operational

Status descriptions are the app owner's own statements about a demonstration platform and are not verified by any regulator or third party.

Continuity

If Democratise stopped operating tomorrow

Assets

Held outside the platform

The trustee continues to hold the asset and can appoint a replacement servicer. Token holders' beneficial interests do not depend on Democratise's solvency.

Records

Register portability

The holder register is exported daily in a transfer-agent-standard format and escrowed with the trustee, so distributions can continue without the platform.

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