💰rcUSD Token

Supporting Assets

rcUSD has a face value of 1 US dollar. Redemption of rcUSD is supported by a pool of diversified, high-quality, institutional-grade, yield-generating assets owned by IssuerCo ("Supporting Assets"). Holders of rcUSD have an unsecured claim against IssuerCo for the face value of the rcUSD the holder owns. rcUSD does not entitle holders to share in any profits (or be subject to any losses) in respect of the Supporting Assets and holders of rcUSD will not have a secured claim against the Supporting Assets.

To enhance security:

• The Supporting Assets are held by a trusted third-party custodian.

• Proceeds from the sale or issuance of rcUSD (e.g., USDC) are transferred to the custodied account and wallet held with the third-party custodian under the name of IssuerCo.

• Generated cash flow from the Supporting Assets is also held at the custodied account and wallet held with the third-party custodian under the name of IssuerCo.

• IssuerCo will publish periodical audited reports and regularly updated valuation in relation to the Supporting Assets via a trusted third-party oracle solution.

The Supporting Asset portfolio composition is actively managed (first by IssuerCo itself, and in due course, such function will be transferred to an asset management company) to optimize value.

Minting and Redemption

Minting: New rcUSD is typically minted upon the deposit of USDC (in the future, IssuerCo may accept other types of stablecoin, such as USDT) as consideration for rcUSD from approved users who have passed KYC/AML checks. Redemption: rcUSD holders can redeem rcUSD with IssuerCo at any time and receive the face value of rcUSD (1 US dollar) in the form of USDC, subject to completion of KYC/AML checks (see detailed KYC/AML requirements on the [Will be available soon] page) and any other conditions that IssuerCo may impose as notified to holders of rcUSD via [Will be available soon] from time to time.

Redemption requests will be processed in a timely manner. IssuerCo will handle all redemption requests submitted on a day prior to 3 p.m. Hong Kong time collectively, and users will be able to claim the corresponding USDC to their own wallet (with users bearing the applicable gas fee) as soon as practically possible thereafter and in any event before 5 p.m. Hong Kong time on the following day.

Redeemed rcUSD is burnt and removed from circulation.

IssuerCo may from time to time mint rcUSDs upon receipt of Supporting Assets from sponsors of R25 and/or proceeds from the Supporting Assets.