Custody

Custody Approach of Delta Money

Institutional Security Through Off-Exchange Settlement

Delta Money employs a robust, institution-grade custody framework that prioritizes the security, integrity, and availability of protocol assets. To support its capital-efficient derivatives strategy and deliver sustainable rewards to sDUSD holders, Delta Money leverages Off-Exchange Settlement solutions provided by leading custodians: Ledger Enterprise, Copper, Ceffu, and Fireblocks.

These partners enable Delta Money to interact with centralized exchange liquidity venues while maintaining direct custody and control over its backing assets at all times. This architecture eliminates counterparty risk commonly associated with centralized exchanges, ensuring that protocol reserves remain protected, segregated, and under full operational oversight.

What Is Off-Exchange Settlement?

Off-Exchange Settlement refers to the infrastructure that allows assets to be custodied independently from centralized exchanges while still enabling seamless trading. Through this model, Delta Money is able to execute delta-hedging strategies across major exchanges without transferring assets directly onto the exchange.

This mechanism serves as a critical safeguard. In the event of exchange downtime, insolvency, or technical failure, Delta maintains beneficial ownership and full access to its assets, enabling it to reassign positions to alternative venues and continue operations with minimal disruption.

The protocol can reallocate margin dynamically, ensuring continuous hedging coverage and strategic responsiveness.

Custodians Supporting Protocol Resilience

Delta Money’s custody is diversified across multiple best-in-class providers:

• Ledger Enterprise: A secure hardware and software-based solution trusted by leading institutions for digital asset management.

• Copper: Offers ClearLoop technology for off-exchange trading, allowing assets to remain in secure custody while being traded.

• Ceffu: The institutional arm of Binance, offering off-exchange settlement capabilities integrated with Binance’s infrastructure.

• Fireblocks: A multi-party computation (MPC) custody and settlement platform delivering operational flexibility and high-grade security.

By distributing custody across multiple providers, Delta Money enhances operational resilience and mitigates concentration risk, ensuring no single provider is critical to the safety of the protocol’s assets.

Transparency and Verification

Delta Money is committed to institutional transparency and accountability. To uphold these values:

• On-chain visibility is offered where feasible. When assets are held in segregated wallets, wallet addresses are made available for public verification.

• For omnibus or pooled custody, independent attestations are provided by custodians at least monthly, verifying the existence and value of held assets.

• Future integrations will enable users to independently validate hedging positions and collateral status via zero-knowledge proofs or similar technologies.

This transparency framework ensures the protocol remains both trustworthy and verifiable, foundational principles for institutional and retail confidence.

Custody as a Foundation for Sustainable Growth

While Delta Money actively integrates decentralized technologies and supports progressive decentralization, its custody strategy remains grounded in realism and risk management.

Accessing the deepest liquidity pools—often available only through centralized venues — requires interaction outside fully on-chain environments.

By employing Off-Exchange Settlement solutions, Delta Money preserves the most critical characteristics of decentralized finance:

• Assets remain off-exchange and outside opaque custodial environments

• Withdrawal and transfer processes are auditable and permissioned

• Protocol exposure to any single venue or custodian is minimized

This approach ensures Delta Money can scale its sDUSD rewards engine responsibly, supporting broader adoption and institutional participation—without compromising on asset security.