For off-chain collateral, we rank storage methods as follows (highest to lowest)

• With regulated custodians in reputable jurisdictions

• With regulated custodians not in reputable jurisdictions (e.g. BVI, Bahamas)

• Others / Undisclosed

XSGD's reserves are held at regulated banks/financial institutions in Singapore.

XFERS holds a Major Payment Institution License. As prescribed by the Singapore Payment Services Act, a major payment institution has to put the following safeguards in place: a) an undertaking or guarantee by any bank in Singapore or prescribed financial institution to be fully liable to the customer for such monies; b) a deposit in a trust account; or c) any other safeguards as may be prescribed by MAS.

Thus, XSGD reserves are fully segregated and bankruptcy-remote.