There is a mistake in the design of stablecoin systems that continues to surface, regardless of how many failures we accumulate as an industry. It is the assumption that a protocol can remain internally correct while delegating critical aspects of it...

Abstract Distributed financial systems are composed of multiple subsystems, each responsible for enforcing a specific invariant. Ledger systems preserve correctness, custody systems enforce authority, compliance systems constrain allowed behavior, ...

Abstract Modern financial systems are often described in terms of individual components. Ledgers enforce correctness. Custody systems control asset authority. Compliance systems constrain behavior. Orchestration layers coordinate execution. Each o...