Treasury Rating Methodology

The reviewed report contains zero qualifying findings.

A configuration or interface inconsistency has only a bounded functional effect. Confirmed security-invariant failures or consequential persistent accounting failures qualify for lower tiers.

A deterministic implementation defect is confirmed, with its realistic production trigger unresolved.

An active reviewed execution path has a confirmed unresolved missing guard. Its economic consequence depends on additional conditions.

An emergency containment capability is exposed but currently requires an administrative role change to authorize an operator.

One direct signing authority or threshold-one account can replace issuer application logic or exercise critical supply, holder-control or administration powers. The controller’s execution authority is verified.

A confirmed defect is reachable with recorded existing production authorization and causes persistently inconsistent accounting or violates a security invariant. Financial loss remains a separate evidence question.

An ordinary external actor or eligible holder can reach a confirmed unresolved failure that violates policy or authorization invariants or persistently disrupts service. Its established consequence excludes unauthorized economic effects.

An ordinary actor can reach a confirmed unresolved failure enabling unauthorized economic transfer, destruction or issuance within a bounded account or operation.

A confirmed unresolved failure gives an ordinary actor arbitrary token-wide issuance, destruction, seizure or draining authority. The report establishes that full scope.

The fund or pool has a current agency rating in the highest credit-quality category. Under the portfolio route, at least 95% of actual holdings is verified at AA− or better and the remainder is investment grade. Bank cash uses the exact bank’s rating. Repos include counterparty quality, collateral quality and enforceability.

The applicable fund rating maps to 80; at least 90% of actual holdings is verified investment grade; or a binding Treasury-only or government money-market-fund mandate qualifies for the alternative assessment. Known contradictory or adverse evidence takes precedence.

The applicable fund rating maps to 50, or at least 50% of actual holdings is verified investment grade and the portfolio meets only this band.

The applicable fund or pool rating maps to 20. Under the portfolio route, less than 50% is investment grade, with credit conditions above the confirmed default or impairment band of 0.

The applicable fund or a material part of the portfolio has an unresolved credit default or material principal impairment.

Actual weighted average maturity is no more than 93 days and weighted average life is no more than 397 days.

Actual values or a binding permitted proxy establish weighted average maturity of no more than 365 days and weighted average life of no more than 730 days. Apply the strongest supported band.

Actual values or a binding permitted proxy establish weighted average maturity of no more than 1095 days and weighted average life of no more than 1825 days. Apply the strongest supported band.

Actual weighted average maturity exceeds 1095 days or weighted average life exceeds 1825 days.

Net unhedged foreign-currency exposure is no more than 1%.

Net unhedged foreign-currency exposure exceeds 1% and is no more than 10%.

Net unhedged foreign-currency exposure exceeds 10% and is no more than 30%.

Net unhedged foreign-currency exposure exceeds 30%.

The largest single non-sovereign credit counterparty represents no more than 10% of the portfolio.

The largest single non-sovereign credit counterparty represents more than 10% and no more than 25% of the portfolio.

The largest single non-sovereign credit counterparty represents more than 25% and no more than 50% of the portfolio.

The largest single non-sovereign credit counterparty represents more than 50% of the portfolio.

At least 95% of dated actual holdings can convert within five business days through maturity, ordinary settlement, documented underlying redemption or supported market-quality evidence. The portfolio is free of material lockups and known contrary restrictions. A score of 100 requires actual holdings and relevant maturity, settlement or market evidence; individual executable quotes are optional.

At least 80% but less than 95% of the portfolio can be converted within the same five-business-day window.

At least 50% but less than 80% of the portfolio can be converted within the same five-business-day window.

Less than 50% of the portfolio can be converted within the same five-business-day window.

Reserve assets are currently materially unavailable for conversion, causing failure to make a redemption payment that is due.

The exact custodian legal entity has a dated, applicable AAA or AA category long-term entity credit rating.

The exact custodian legal entity has a dated, applicable A category long-term entity credit rating.

The exact custodian legal entity has a dated, applicable BBB category long-term entity credit rating.

A bank, trust, depositary or specialist custodian has a verified appointment, substantive custody authorization and regulatory or independent review obligations.

The exact custodian legal entity has a dated, applicable BB or B category long-term entity credit rating.

Custody relies on a contract or general registration, or the applicable custody authorization is unavailable.

The exact custodian legal entity has a dated, applicable CCC, CC or C category long-term entity credit rating.

The custodian has defaulted, entered bankruptcy, lost a critical custody authorization, or holds customer assets confirmed to be unrecoverable.

The applicable custody arrangements establish asset segregation, ownership records, separation of asset-control duties and reconciliation. An independent review demonstrates that these controls operate.

Applicable documents establish asset segregation, ownership records, separation of asset-control duties and reconciliation.

The complete set of custody controls is unavailable, or a material control is confirmed absent.

Custody records are confirmed unreliable, or a material custody-asset reconciliation gap remains unresolved.

The token holder is a directly registered shareholder or legally registered beneficial unit holder in the applicable fund.

The token holder has a clearly enforceable interest in a separate vehicle that owns the underlying fund units.

The holder has an explicit contractual repayment claim against the issuer, and the terms expressly exclude direct ownership of the underlying assets.

Applicable terms deny enforceable rights to underlying assets or repayment, or the rights remain undisclosed after all required inquiries.

Formal legal arrangements establish that product assets are separate from the issuer’s general bankruptcy estate, with clear beneficial interests or priority recourse for holders.

Formal documents establish separate accounting and enforceable interests in a dedicated pool, with bounded cross-series indemnities, advances or other specified shared liabilities. A lawful residual interest in directly registered fund shares qualifies while remaining subject to the fund’s own creditors. Qualification requires protection beyond the issuer’s general estate, ordinary unsecured claims and marketing statements.

The terms expressly allow commingling, holders have only ordinary unsecured claims, or segregation remains undisclosed after the required inquiry.

Commingling or bankruptcy has occurred and holder protections have been invalidated or a material protection gap has crystallized.

The fund has an applicable independent financial audit and an independent NAV administrator. At least five consecutive fund business dates have actual dated NAV observations supported by the original records and the fund’s calendar.

An applicable independent financial audit or independent NAV administration provides accounting assurance.

Independent accounting assurance is unavailable, or the fund is confirmed to rely mainly on self-reporting.

An audit has issued an unresolved material adverse conclusion concerning reserve or NAV reliability.

An independent process reconciles the exact token rights to underlying units or the authoritative shareholder register, covering actual issuance and reconciliation-error handling. Direct shares can qualify through a statutory register covered by audit.

Explicit unit mapping and issuer reconciliation operate alongside independent assurance over the underlying fund. Independent wrapper-specific verification remains unverified.

Independent or credible internal reconciliation between token issuance and underlying units is confirmed unavailable, with backing supported mainly by a general issuer statement.

Token issuance is confirmed to exceed supporting rights, or a material unit mismatch remains unresolved.

The exact ordinary route is available to eligible holders and publishes daily processing, settlement or sending, or a normal schedule of no more than 3 business days.

The exact ordinary route publishes a normal processing, settlement or sending schedule of more than 3 and no more than 10 business days.

The ordinary schedule exceeds 10 business days, including a maximum interval between ordinary windows of more than 10 business days, or requires delivery in kind.

No ordinary handling schedule is disclosed. Acceptance and timing are decided case by case, and no other ordinary route with a disclosed schedule is available.

The selected ordinary route is currently confirmed to have stopped accepting or processing eligible requests, with no executable alternative.

Timely redemption is verified through at least one market or product stress event, and no role has unilateral discretionary authority to suspend exits.

Sustained ordinary processing or bounded queues are verified, with no known repeated unreliability. Discretionary suspension authority is permitted at 65 and prevents 100.

Repeated freezes, unpredictable long delays or failure of exits during stress are verifiable.

Eligible redemption payments due have failed continuously for two weeks, or exits are currently terminated.

The actual holding vehicle is a formally authorized registered retail fund.

The actual holding vehicle is a professional fund regulated at fund level or managed by an authorized manager, with applicable supervision and independent audit requirements.

The actual holding vehicle operates under a defined exemption or private-placement regime, without retail- or professional-fund authorization.

An applicable regulatory or exemption basis is confirmed absent, or the regime remains undisclosed after the required inquiry.

An applicable regulator has formally prohibited the issuance and it is continuing.

Every critical role is precisely identified and holds the required valid business authorization, or has a verifiable basis establishing that its duties require no such authorization.

The roles are lawful but subject to disclosed business conditions that actually restrict this product’s service.

At least one critical role is confirmed to act outside its authorized scope, or is subject to a formal unresolved regulatory restriction.

A critical role has been formally prohibited from continuing a service necessary to this product.

The relevant manager has at least twenty years of comparable asset-management operations and the relevant tokenization or register service has at least three years of continuous operation. Both histories identify the service entity, function, dates and supporting sources.

At least one relevant service history meets its twenty-year management or three-year register threshold, with the entity, function and dates supported by original sources.

Both relevant services have shorter histories, or neither qualifying history is supported by the available records.

An unresolved operating failure currently prevents a critical mechanism from fulfilling its duties.

Responsible parties, operating procedures and an executable recovery or replacement route are established for essential services. An actual service recovery or test demonstrates that the route operates.

Essential service responsibilities, operating procedures, a recovery or replacement action and its activation conditions are established in applicable documents.

The complete service-continuity arrangement is unavailable, or a necessary responsibility or recovery route is confirmed absent.

A service or responsibility failure currently blocks lawful holding, registration or redemption.

The exact issuer and product regime and all required critical-service authorizations are valid. A lawful exemption can satisfy an applicable requirement. Substantive fund or prudential supervision applies at product level or to the relevant manager.

Applicable documents establish lawful issuance or an exemption, while neither the issuer and product nor the relevant manager is subject to substantive investment-fund or prudential supervision.

The applicable authority or binding legal requirement requires authorization, and the responsible entity is confirmed to lack it.

A currently effective formal order prohibits issuance or an irreplaceable service needed to fulfill obligations, with no effective lawful substitute.

Authorization evidence remains unavailable or unresolved. Apply the stated evidence ceiling.

Applicable terms and law establish a dedicated protected asset pool with enforceable holder interests insulated from unrelated issuer liabilities. Public governing documents can establish this for a regulated direct-fund structure.

Protection exists, but applicable terms establish an identified cross-series or other specified third-party liability against product assets. The exposure must be evidenced.

The terms establish that backing enters the operating issuer’s general estate or can support unrelated obligations without effective dedicated-pool protection.

A court, insolvency process, auditor or verified transaction evidence establishes material protection failure, misappropriation or competing claims already impairing available backing.

Insolvency-protection evidence remains unavailable or unresolved. Apply the stated evidence ceiling.

The holder has an enforceable proprietary interest, registered fund share or beneficial interest in the protected assets corresponding to the rated instrument. Holding fund units through a wrapper can qualify.

The holder has only a contractual repayment claim against the issuer, with enforceable secured priority over specified backing. Equivalent proprietary or beneficial rights are absent.

The holder has only an enforceable unsecured contractual repayment claim against the issuer, without direct or protected beneficial entitlement to backing.

Holder-rights evidence remains unavailable or unresolved. Apply the stated evidence ceiling.

An operating recurring independent process verifies backing and its correspondence to the rated obligations. For direct fund shares, a current statutory fund audit and independently controlled shareholder register or reconciliation can qualify.

The verified process expressly excludes a material part of backing, obligations or an issuance route. Material means at least 5% of NAV or unlimited issuance capacity outside the process.

Applicable process documents or an issuer statement confirm that backing checks are solely issuer-operated, with no recurring independent verification.

Independent or directly verified evidence establishes an unexplained backing deficit exceeding 1% of promised obligations, or material unsupported issuance that remains unresolved.

Backing-verification evidence remains unavailable or unresolved. Apply the stated evidence ceiling.

The fund or portfolio credit-quality score is at least 80 under the applicable agency-rating or portfolio assessment.

The fund or portfolio credit-quality score is at least 50 and below 80.

The fund or portfolio credit-quality score is at least 20 and below 50. Its evidence proxy or information-gap basis remains attached.

The fund or portfolio credit-quality score is below 20 because a current credit default or material impairment is confirmed.

Credit-quality evidence remains unavailable or unresolved. Apply the stated evidence ceiling.