① Bank custody practices

Industry consensus : In mainstream RWA and digital asset issuance practices, the segregation of investor funds and operating funds has become a fundamental structure. Common practices include:

• Funds enter an independent escrow account
• Custodian banks or third-party payment institutions manage fund flows
• Profits are distributed through an escrow account.
• Multiple signatures or third-party approval mechanisms

Core consensus:
Custody of funds is an infrastructure for investor trust and risk isolation.

Reasons for its formation <br>This practice is mainly based on three points:
1 ) Preventing the risk of misappropriation of funds: separation of issuer and asset operator.
2 ) Strengthen investor protection and ensure the verifiability of fund usage.
3 ) Increase institutional participation. Institutional investors typically require custodian structures.

Significance of RWA's release

• Establish a transparent funding pathway
• Enhance the credibility of fundraising
• Reduce moral hazard
• Support for automated subsequent profit distribution