Monochrome Compliance and Security Statement on Advancing RWA

To our valued global users, partners, and stakeholders:
Thank you for your interest in and support of Monochrome. As an innovative trading platform dedicated to bridging Real World Assets (RWA) and digital finance, we deeply understand that compliance is the foundation of our survival, and security is the lifeline of our development. We are in an era of transformation in asset forms, yet “compliance first, security foremost” remains our unshakable core principle.
This document is intended to publicly disclose to all stakeholders our core positions and practical framework regarding platform compliance governance, business security assurance, and our efforts to address the financing challenges of real-world assets.

1. Platform Compliance: Building a Multi‑Layer Legal and Regulatory Framework

The tokenisation and trading of RWA involve complex legal attributes, cross‑border regulatory considerations, and asset title verification. To address these, Monochrome has adopted the following highest‑standard compliance measures.

1.1 Unwavering Commitment: Licences and Local Compliance
We are actively pursuing – and in some cases have already obtained – the requisite licences for digital asset trading, payment services, or capital markets services in major global financial jurisdictions, including but not limited to Singapore and Hong Kong. Every RWA listed on our platform must be assessed by a legal opinion from the jurisdiction of incorporation, ensuring that its issuance and trading do not violate local securities, commodities, or property laws.

1.2 Rigorous Mechanism: Asset Look‑Through and Title Verification
Before any RWA is onboarded, it must undergo a “legal look‑through” – an independent third‑party law firm conducts due diligence on the ownership, creditor rights, and validity of transfer of the underlying asset (e.g., bonds, trade receivables, real estate income rights) and issues a legal opinion. We adhere to the iron rule: “No title verification, no tokenisation.”

1.3 Prudent Access: Comprehensive User Vetting
We have deployed industry‑leading digital identity verification systems and sanctions screening tools. All users (both individual and institutional) are subject to tiered, dynamic risk assessments and full compliance with global Anti‑Money Laundering and Counter‑Terrorism Financing (AML/CTF) standards to prevent illicit funds from entering the platform.

2. Business Security: Full Life‑Cycle Risk Control and Technical Protection

We employ a dual “on‑chain + off‑chain” security framework to ensure business continuity and data integrity.

2.1 Technical Security Architecture
Smart Contract Audits: All trading and settlement contracts are audited by independent security firms before launch, and an audit report summary is provided.
Private Key Management: Platform hot wallets use multi‑signature schemes; cold wallets are stored completely offline. Any fund movement requires authorisation by at least 75% of the committee, eliminating single points of failure.

2.2 Business Process Security
Transaction Monitoring: We have built real‑time behavioural analytics models that automatically trigger circuit breakers and manual reviews for abnormal trading activities (e.g., market manipulation, unusual orders, frequent cancellations).
Asset Custody: User trading funds are strictly segregated from platform operating funds. The underlying legal documents or tokens representing RWA are held by licensed third‑party custodians.

3. Solving RWA Financing Challenges: Creating Value in a Better Way

We recognise that a large number of high‑quality real‑world assets (such as SME receivables, supply chain notes, and green energy assets) face financing difficulties due to illiquidity, low standardisation, and lengthy intermediary chains. Monochrome’s goal is to use blockchain technology to build a bridge in a “more compliant, more transparent, and more efficient” manner.

3.1 Asset Standardisation and Fractionalisation
Under strict compliance, we standardise and legally fractionalise high‑quality RWA, lowering the entry threshold for eligible investors and thereby introducing broader, lower‑cost liquidity to the asset side.

3.2 Full‑Chain Transparency
From the origination, title verification, and custody of underlying assets to the issuance, trading, and redemption of tokens – all key information is cryptographically recorded on‑chain or in off‑chain databases and can be audited with proper authorization. This “look‑through” trust mechanism significantly reduces information asymmetry between investors and issuers.

3.3 Global Liquidity Aggregation
Leveraging the global nature of digital finance, and while complying with applicable regulatory frameworks, we connect localised RWA with international capital. We are committed to enabling value creation without geographic boundaries, while strictly adhering to the rules governing compliant capital flows.
Closing Statement
Monochrome strives to become the benchmark for compliance and security in the RWA sector. We will not sacrifice security for speed, nor will we avoid compliance for short‑term gains. We believe that only on a solid foundation of compliance and security can we truly and sustainably solve the financing efficiency problems of real‑world assets.
We welcome supervision and guidance from regulators, partners, and third‑party audit institutions.

Monochrome Compliance and Strategy Committee