3.4.8. Asset Segregation

Collateral for each Minter is either to be stored in a separate legal entity per Minter or the jurisdiction must provide legal frameworks that enable the establishment of separate compartments or estates or sub-funds within a single legal entity, ensuring that each compartment or estate or sub-fund is its own distinct pool of assets and liabilities.

There must be clear legal recognition that assets within one compartment or estate or sub-fund are exclusively reserved for the investors and creditors of that compartment or estate or sub-fund and are protected from the claims of creditors of other compartments or estates or sub-funds and claims of creditors of the legal entity to ensure the functioning of the intended wind down processes, as described below.