> For the complete documentation index, see [llms.txt](https://vnx.gitbook.io/vnx-global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vnx.gitbook.io/vnx-global/institutional/custody/asset-segregation.md).

# Asset Segregation

*Customer fiat in a Safeguard Reserve Account ring-fenced from VNX's operational accounts; on-chain assets in collective customer wallets — no co-mingling.*

## Overview

VNX segregates client assets from its own operational assets across both fiat and digital-asset rails. Customer fiat is held in a dedicated Safeguard Reserve Account at the banking custodian, ring-fenced from VNX's operational account. On-chain customer assets are held in collective customers' crypto wallets dedicated exclusively to client funds, separate from corporate wallets.

## Key benefits

* **Bankruptcy-remote claim hierarchy** — reserves are legally ring-fenced and structured so that neither the Company including its affiliates, nor creditors can claim the assets.
* **Five-year evidentiary trail** — chain-of-custody and approval evidence retained for review for five years.

## Use cases

* **External auditors** — tracing customer balances from the dashboard to the segregated bank account or on-chain wallet.
* **Institutional treasury** — confirming that VNX's segregation model satisfies internal counterparty due-diligence requirements for stablecoin holdings.

## How it works

Customer fiat is segregated in a dedicated Safeguard Reserve Account ring-fenced from VNX's own operational account. The banking custodian (BCB) implements dual control and configurable multi-user payment-initiation approvals at the online banking layer, and segregation of duties is enforced between transaction initiation, approval, and processing functions. Risk-based transaction authorisation by BCB results in documented approval evidence retained for five years.

Customer digital assets are held in collective customers' crypto wallets dedicated exclusively to holding customer funds, separate from VNX corporate wallets. The platform reconciles bank balances and on-chain wallet balances to the internal ledger on a daily cadence. Stablecoin reserves backing VNX-issued tokens (VCHF, VGBP) sit in the fiduciary account under the structures described in reserve management.

## Segregation model at a glance

| Asset class                           | Account / wallet                    | Custodian                 | Co-mingling                        |
| ------------------------------------- | ----------------------------------- | ------------------------- | ---------------------------------- |
| Customer fiat                         | Safeguard Reserve Account           | BCB or other regulated FI | Prohibited                         |
| Customer fiat (stablecoin reserves)   | Safeguard Reserve Account           | Fiduciary bank            | Prohibited                         |
| Customer crypto / stablecoin holdings | Collective customers' crypto wallet | VNX (omnibus on-chain)    | Separate from corporate wallets    |
| VNX operational                       | Operational Account                 | BCB                       | Ring-fenced from customer accounts |

## Regulatory and risk context

Asset segregation is anchored in DABA, the BMA Stablecoin Guidance, and is documented in the Custody Policy. Together with reserve management, it forms the operational backbone for the stablecoin-specific risks controls (reserve adequacy, redemption pressure, operational risk).

## Related

* [Reserve Management](/vnx-global/institutional/reserve/reserve-management.md)
* [Liquidity Buffers](/vnx-global/institutional/reserve/liquidity-buffers.md)
* [Stablecoin Specific Risks](/vnx-global/institutional/risk/stablecoin-specific-risks.md)
* [Minting and Redemption](/vnx-global/institutional/products/minting-and-redemption.md)
* [Reserve Transparency](/vnx-global/transparency/reserve-transparency.md)