Legal and Regulatory Compliance

Tokenizing RWA assets must strictly comply with laws and regulations across different jurisdictions. BlockRock employs a robust compliance framework to ensure all product designs meet legal standards. We collaborate with leading legal, tax, and regulatory experts to guarantee adherence to relevant regulations.

1. Fund Structure

   BlockRock’s RWA tokenized funds utilize a Special Purpose Vehicle (SPV) structure. The SPV oversees fund investment, management, and custody while ensuring compliance.

   • Each fund’s specific structure and compliance requirements are tailored based on its investment objectives, applicable regulations, and investor demands.

2. Securities Law Compliance

   • Funds on the BlockRock platform are registered or exempt under regional securities laws, ensuring investor eligibility aligns with accredited standards.

   • Tokenized fund shares (e.g., QQQAI Token [$QQQAI]) are available only to investors meeting specific regulatory criteria (e.g., non-U.S. persons outside the U.S.), complying with securities issuance and trading rules.

3. KYC / AML / Counter-Terrorism Financing Compliance

   • All investors must complete KYC (Know Your Customer) and AML (Anti-Money Laundering) processes before investing, adhering to global financial crime prevention regulations.

   • Identity verification is conducted by compliance teams and third-party certification agencies to meet international regulatory requirements.

4. Asset Custody and Liquidity Management

   • Custodians: All fund assets are held by regulated custodians to ensure security.

   • Liquidity Support: Market liquidity is supported by institutional market makers (MMs) and risk management mechanisms to ensure price stability and market depth for tokenized assets.