Off-Exchange Settlement

Secure Custodial Framework for Institutional-Scale Asset Deployment

Delta Money leverages a multi-provider Off-Exchange Settlement (OES) architecture to safeguard the protocol’s collateral and trading capital, while maintaining full access to deep liquidity across centralized and decentralized venues. This framework ensures custody and execution are separated, enabling operational efficiency without compromising asset security.

Custodial infrastructure is provided by Ledger Enterprise, Copper, Ceffu, and Fireblocks — leading institutional digital asset custody and settlement providers. These partners are selected for their security track records, regulatory alignment, and integration with major trading venues.

Custodial Design and Asset Control

Under the OES model, all assets backing Delta Money’s hedging and reward-generation strategies are held in custody by third-party providers, not on centralized exchanges. While custodians hold the assets, operational workflows are configured to delegate capital to exchanges as needed — without requiring full on-exchange deposits.

This allows Delta Money to retain maximum control over its collateral while utilizing high-liquidity execution venues. Assets remain within the custodian’s secure environment, only moving through authorized delegation mechanisms for settlement or margin coverage.

Though custodial title resides with the OES provider, Delta Money retains beneficial ownership and full operational discretion through governance-enforced permissions. This clarity is essential for continuity in the event of exchange or counterparty failure.

Risk Management and Redundancy

The protocol is built to mitigate two principal risks:

• Access Risk: The ability to delegate, recall, or reallocate capital is fundamental to Delta Money’s hedging operations. The protocol operates with multiple custodians simultaneously, ensuring redundancy and minimizing single points of failure. Automated systems monitor custody availability, integration latency, and execution routing.

• Exchange Failure Risk: If a partnered exchange experiences disruption or insolvency, OES providers act as a protective intermediary layer. Exchanges are typically required to pre-post margin with the OES provider, enabling rapid collateral reclamation and uninterrupted exposure reallocation.

This architecture ensures that exchange-facing risks are isolated, while maintaining settlement continuity on intraday cycles.

Execution Access and Liquidity Routing

The OES model provides Delta Money with flexible execution access across:

• Major centralized exchanges (CeFi)

• On-chain DeFi venues

• Regulated OTC desks and market makers

This operational flexibility is essential to executing strategies such as basis spread capture, funding rate arbitrage, and delta-neutral yield for sDUSD holders.

Custodial delegation enables real-time exposure adjustment, execution optimization, and capital efficiency — avoiding inefficiencies tied to static asset allocation.

Crucially, OES partners reduce the need for pre-funding exchanges, lowering credit risk while preserving execution responsiveness.

Institutional Governance and Oversight

Custody relationships are governed by protocol-level oversight and undergo continuous due diligence to ensure adherence to institutional security standards. Each OES provider is evaluated on:

• Regulatory jurisdiction and legal clarity

• Security certifications (e.g. ISO 27001, SOC 2 Type II)

• Uptime and performance metrics

• Integration capabilities with top-tier venues

Delta Money’s custody model is designed to evolve with protocol growth. Upcoming initiatives include:

• Threshold multisig configurations

• Independent reserve attestations

• Expanded custodian onboarding for geographic and operational diversification