3.1. Criteria for Eligible Collateral

Definition of eligible collateral in the M^0 ecosystem.

We expect Validators to solely and exclusively recognize assets as Eligible Collateral when such assets conform to the criteria below.

i. Criteria for the Eligibility of Assets:

• United States Treasury Bills with a remaining time to maturity of 90 days or less.

• Wrappers of United States Treasury Bills such as money market fund units (in so-called tokenized form over appropriate distributed ledgers—such as Ethereum Mainnet—or traditional book entry form) or any other comparable wrapper, that comply with the above mentioned remaining time to maturity criteria - subject to specific definition of the financial product in scope.

  • List of approved wrappers: (1) Superstate Short Duration US Government Securities Fund (commonly referred to as USTB)

ii. Ancillary Criteria for the Eligibility of Assets:

• So-called In-Transit Cash, defined as Deposit Equivalents in an amount equal to placed-and-executed-but-not-yet-settled buy orders for assets defined in (i). In case such orders are ultimately canceled, settled, or never settled, such balances shall no longer be recognized.

• So-called In-Transit Securities, defined as executed-but-not-yet-settled sell orders for assets defined in (i) (at the time of purchase) in case, for the avoidance of doubt, neither the securities nor balances in Deposit Equivalents are listed in the Collateral Storage (and more specifically Custody Account and Deposit Account of the SPV).