RWA Mirroring ModelByCustody's RWA Mirroring Model enables institutional clients to unlock the trading value of their Real-World Asset (RWA) holdings without moving the underlying tokens out of custody.
• Mirroring ratio: 1:1
• Custody location: RWA assets remain in segregated, insured custody and are never exposed to exchange risk.
• Withdrawals: Mirrored balances cannot be withdrawn from the exchange. Access your RWA holdings only through the custodian.
SettlementsExchanges calculate settlements and send settlement instructions to ByCustody for transfers to and from the Off-Exchange Vault.
The settlement process includes the following parameters:
• Settlement calculation: Gross or net
• Settlement cycle: Varies by exchange
Settlement ThresholdThe settlement threshold is the minimum amount required for a settlement. Balances below the threshold are not settled.
Initiating SettlementsSettlements can be initiated by either the user or the exchange.
Exchange-Initiated SettlementsThe exchange initiates settlements according to its settlement cycle.
Bybit
• Settlement cycle: Every 2 hours
• Settlement approval SLA: 4 hours
• Settlement review SLA: 72 hours
User-Initiated SettlementsYou can initiate a settlement at any time instead of waiting for the exchange's scheduled settlement cycle. Before starting a new settlement, ensure there isn't already one in progress.
To initiate and complete a settlement:1. On the “Off-Exchange” tab, select the vault you wish to settle, then click “Settle”.2. Review the settlement summary generated by the exchange, then click “Settle” to continue.3. Complete two-factor authentication (2FA) to submit the settlement request.4. If outgoing transactions are generated, approve them in the ByCustody app.5. After the outgoing transactions are completed, incoming transactions are generated automatically and credited to your Off-Exchange Vault.
VaultOn-chain Balance (USD)Exchange Credit Balance (USD)Exchange Available Balance (USD)Pending Credit Balance (USD)Unsettle Value (USD)Action
OFF_EXCHANGE_318_10011294222.69000-2.69Settle
RWA Off-Exchange Settlement MechanismUnder normal trading conditions, RWA tokens are excluded from the settlement process. No settlement orders, suspension states, or settlement confirmations are required.
RWA tokens are included in settlements only under the following circumstances:
• Repayment: Use RWA assets to manually repay spot and derivatives liabilities. If auto-repayment is triggered, available collateral assets are used to repay the outstanding balance.
• Force liquidation: If the account's crypto assets are insufficient to cover an outstanding loss, the system automatically uses RWA tokens to cover the remaining shortfall.