Compliance Engine

Real-World Asset (RWA) tokenization is governed by extensive and dynamic regulatory frameworks that differ significantly based on asset classes, jurisdictions, and participant roles (asset owners, issuers, investors). Additionally, evolving regulatory & corporate governance policies necessitate flexible compliance mechanisms.

Trevo addresses these challenges through a sophisticated, modular Compliance Engine that ensures seamless, transparent, and continuous adherence to evolving regulatory requirements. The platform incorporates accredited compliance providers, systematically validating every on-chain settlement operation prior to execution.

KYC (Know Your Customer)

KYC is essential for nearly all real-world asset ownership, and Trevo integrates fully authorized KYC providers covering all supported jurisdictions. Core functionalities include:

• User and Entity Verification: Mandatory KYC processes performed by accredited providers at user and corporate registration.

• Decentralized Identity Management: Securely linking verified identities to blockchain addresses while ensuring sensitive personal data is securely stored off-chain.

• Real-Time Validation: Automatic verification of KYC status before settlement transactions are executed, maintaining continuous compliance.

AML (Anti-Money Laundering)

AML regulations are universally applied to liquid assets, though specifics vary based on jurisdiction and asset type. Trevo’s Compliance Engine seamlessly integrates AML compliance via:

• Real-Time Automated AML Screening: Accredited AML providers conduct instantaneous checks against international sanctions lists, watchlists, and suspicious activity reporting.

• Regulatory Adaptability: Flexible AML protocols easily tailored to jurisdiction-specific requirements.

Regulatory Compliance

Asset transactions are subject to diverse jurisdictional regulatory frameworks, covering individual transactions, overall asset ownership structures, and market impacts. Examples include:

• Investor Caps: Limits on the number of investors for particular assets, affecting asset classification.

• Cross-Border Restrictions: Jurisdiction-specific transfer restrictions based on recipient locations.

• Issuer Obligations: Continuous reporting, audits, and disclosure obligations imposed on asset issuers.

Trevo integrates expert Regulatory Compliance Providers capable of validating adherence to both local and global asset-specific laws, covering all operational jurisdictions and ensuring transactions remain legally compliant.

Corporate Compliance

Certain asset categories, notably private company shares, require additional governance measures. Examples of compliance measures include:

• Board Approval Requirements: Mandatory governance approvals for asset transfers.

• Preemptive Rights Enforcement: Existing shareholders’ prioritized purchase rights.

Trevo allows issuers to deploy tailored Corporate Compliance Providers using either:

• Pre-built, No-Code Compliance Templates: Efficient, user-friendly templates addressing common governance scenarios.

• Custom Compliance Providers: Fully customizable solutions developed specifically to address unique corporate governance requirements.

Configurable Asset Compliance

Trevo enables token issuers to seamlessly connect their assets to relevant compliance providers, effectively delegating regulatory oversight:

• Dynamic Provider Selection: Tailored provider selection based on asset class, regulatory jurisdiction, and corporate policy requirements.

• Transparent On-Chain Configuration: Clearly documented and auditable compliance rules and integrations recorded directly on the blockchain.

Compliance Providers and Economic Model

Compliance Providers are integral to the stability, transparency, and legal adherence of Trevo’s ecosystem, involving continuous operational and technological investment. Providers within Trevo’s framework:

• Flexible Fee Structures: Providers independently establish and adjust their fee schedules.

• Automated Fee Management: Fees are automatically processed via Trevo’s blockchain infrastructure, efficiently managed and transparently allocated by token issuers.

By embedding compliance into every phase of the asset lifecycle, Trevo ensures that RWA tokenization remains robustly compliant, operationally efficient, and fully transparent for participants and regulators alike.