Legal Oversight
Legal Entity and Trust Structure
XRB DAO is a decentralized autonomous organization. Meaning that XRB DAO only lives in the digital world without any connection to the classical world of paper contracts, registered addresses, managerial control, etc.
An XRBG token is a digital ownership certificate of 1 gram of physical gold.
Through acquiring a XRBG token, the token holder becomes a member of XRB DAO.
In classical wording one would say that XRB DAO is a closed private club of gold owners.
Once one is a member of XRB DAO, and only then, a member has voting rights on XRB DAO intended activities and can access the services provided by the club (XRB DAO).
As such, XRB DAO does not offer or provide any services or goods to anyone of the general public: them being legging entities, private persons or any other legal form or entity.
However, physical gold is a commodity with physical aspects (as stated in the Periodic Table of the Elements). So it is a physical material and not digitized.
For this aspect XRBG Trust was created (registered in Curacao under number 169124). The sole role of XRBG Trust is to hold the gold for and behalf of token holders, and if requested send the physical gold to a token holder. After which that specific token is burned. Redemption requests from token holders will be honored and cannot be refused, except in cases of criminal activity by the token holder.
The trustee of XRBG trust is Legacy Vault Services STC BV, a legal company registered in Curacao under number 169064.
Registration Documentation
Registry Search: https://www.curacaochamberofcommerce.com/registry-services/registry-search/
Regulatory Oversight and Safeguards
XRBG Trust and its trustee Legacy Vault Services STC B.V. is indirectly regulated by the Central Bank of Curacao and Sint Maarten (CBCS), and the latter cooperates with the Dutch Central Bank (DNB). This regulatory oversight ensures compliance with applicable financial laws, like anti-money laundering regulations, and upholds system integrity. As such, the physical gold is safeguarded under the strict legal framework of the authorities of the Kingdom of the Netherlands.
All digital smart contracts governing XRBG tokens are published on the blockchain, ensuring transparency and immutability. Immutability means no party can alter the agreed terms in the smart contract, thus protecting token holder ownership rights.
Financial Audits
Legacy Vault Services STC B.V. will engage a renowned accounting firm to conduct annual audits. These audits ensure transparency and accountability.
Bankruptcy Protection
XRBG Trust structure ensures the physical gold (the assets) is fully separated and segregated. All gold represented by XRBG tokens is held in custody by XRBG Trust. In the event of insolvency of the trustee, the physical gold remains separate and segregated from any debt or liabilities of the trustee.
Smart Contract Audits
The XRB Gold smart contract, named CompliantXRBGoldEthereumXRBDAO on Ethereum and CompliantXRBGoldPolygonXRBDAO on Polygon, was compiled and deployed using Bitbond's Token Tool. Bitbond’s configurable smart contracts have already been pre-audited by CertiK to ensure they work as intended. CertiK, founded in 2018 by professors from Columbia and Yale, is a leading blockchain security firm. It uses advanced technologies like Formal Verification and AI to secure and monitor blockchain protocols, smart contracts, and Web3 applications. Since the smart contract code is pre-audited by default and forked from a battle-tested, existing ERC-1400 compliant standard—rather than generated from scratch—independent verification wasn't entirely necessary for deployment purposes. However, for compliance and reporting purposes, the XRB Gold smart contract will seek its own independent smart contract audit by third-party specialists and publish the results in our documentation.
Transaction Analysis and Surveillance
XRB Gold is actively implementing third-party analytical tools like Chainalysis to monitor blockchain transactions. This monitoring aims to detect and investigate potential instances of criminal activity, such as fraud and money laundering. As XRBG operates on public blockchains like Ethereum and Polygon, anyone can easily review and audit the entire transaction history since its inception.
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