Asset Security

When a user purchases stock tokens, Reflection purchases the same number of shares of the associated stock on the stock exchange at the same time, and the shares are held until the user comes back to redeem their tokens. These are “real” shares of stock, held in our brokerage account, not some crypto version of the shares, therefore the user’s investment is secure.

When a user redeems (sells) their stock tokens back to Reflection, they obtain RUSD in their wallet. The funds to back up this RUSD initially come from the sales proceeds and so are directed into the brokerage account. As needed, all or some of those funds could then be converted to stablecoin (such as USDT) and transferred into our wallet. Since some portion of the funds backing RUSD are in the Reflection wallet, it is essential that this wallet be secure. To that end, we will employ Fireblocks to manage the wallet and sign transactions. Fireblocks is the premier provider of digital asset custody services and uses state-of-art MPC technology which dictates that the private keys are geographically dispersed across three separate servers, so the wallet is secure.