A3. Custody

Overview

After purchasing tokens, you hold them safely or retire them immediately. EDMA's custody system ensures you always see what you hold, where it sits, and what actions you can take—selling, retiring, or transferring based on each route's rules.

Three Custody Options

• Self-custody (default) — Hold tokens in your own wallet with full control of your keys. EDMA displays balances, proof links, and enables selling or retiring anytime. Best for users comfortable managing their own security.

• EDMA Custody — For teams that prefer not to manage keys, we integrate a qualified custodian. You receive a named, segregated account with identical controls and receipts. Provides institutional-grade security without operational burden.

• Bring-your-own custodian — Connect your existing institutional custodian via API. Works with segregated or omnibus setups. Tokens retain their Proof of Validation and One-Claim links regardless of custody location.

Regardless of your choice, proofs follow tokens. If an attestation is revoked, holdings are flagged automatically wherever they're held.

What You Can Hold

The custody system supports energy tokens (MWh units), carbon tokens (tCO₂e units), granular attributes (hourly/24-7 matching), EDM (protocol fee token), and EDSD (settlement balance). Event and Milestone Tokens for OTC contracts live in the Trade rail separately.

Settlement Choices

When trades settle, you have two paths:

• Take custody — Token moves to your wallet or custodian account for future selling, transferring, or retiring.

• Retire immediately — Skip custody and claim the environmental benefit now. You receive a time-stamped retirement receipt and shareable proof page.

Interface Design

Each holding displays type, quantity, region/method, vintage, and links to Proof of Validation and One-Claim data. Action buttons (Sell, Retire, Transfer) show what's possible. If a route prohibits an action, the button is disabled with an explanation.

Every transaction generates exportable receipts (CSV/PDF with explorer links) for ERP and ESG reporting systems.

Transfer Controls

Addresses must be whitelisted for each token class. Some routes require EDSD-only settlement. Optional features include daily transfer caps and cooling-off periods for large moves.

If an attestation is withdrawn or expires, the token freezes—visible in your account with explanation, but unsellable and untransferable until resolved.

Restricted vs. Unrestricted Tokens

Some tokens carry legal transfer limits (e.g., U.S. Regulation D private-sale holdings). EDMA tags these as restricted in custody.

Restricted tokens are credited per your vesting schedule, but public resale is blocked until legal unlock dates. Unrestricted tokens (like Regulation S after compliance periods) transfer freely subject to route rules.

When counsel clears a lot for resale (typically after 12 months for non-affiliates), EDMA changes the status from restricted to unrestricted and notifies you. Your dashboard always shows what's vested, tradable, and the unlock date per lot.

EDSD and EDM

• EDSD is your settlement balance. Keep it in custody, use it to buy or retire tokens, or redeem through supported off-ramps where permitted.

• EDM pays protocol fees. Settlement screens show the fee line and a counter of tokens removed from supply through your activity. Network fees are minimal and handled automatically—no ETH required.

Institutional Features

Organizations get role-based access (maker-checker, multi-approver transfers, SSO/SAML), complete audit trails with receipts and explorer links, monthly statements and CSV exports, sub-accounts for separating desks or projects, and API/webhooks for real-time data on balances, receipts, retirements, and alerts.

Security and Compliance

All accounts require KYC/KYB verification and sanctions screening. Self-custody supports hardware keys and 2FA. Custodial arrangements use MPC or multi-sig security. Jurisdiction policies block certain tokens from restricted locations with clear explanations. Holdings are segregated and recoverable under partner continuity plans.

Retirement Process

Retiring a token locks the claim permanently. You receive a retirement receipt (who, what, when, quantity) plus a public proof page showing serial number, claim details, and full Proof of Validation trail. Retired tokens remain visible in your account for audits and ESG reporting.

Core Principles

You always see what you hold and what it means. You control whether to hold, sell, or retire—with receipts for every action. If proof fails, we freeze the risk while maintaining your visibility. Restricted tokens stay restricted until legally cleared, then we remove the lock and notify you.

No proof, no token, no payment, no surprises.