T-REX Ledger
The compliant reconciliation ledger for Regulated Financial institutions
1. Concept and Purpose
The T-REX Ledger is the foundational layer of the ERC-3643 ecosystem — a domain-specific blockchain infrastructure designed to act as the canonical ledger and book of record for regulated digital assets.
Rather than competing with existing Layer 1 or Layer 2 blockchains, the T-REX Ledger functions as a trusted financial substrate where real-world assets, tokenized under ERC-3643, reconcile and settle across chains.
Its purpose is to provide:
Authoritative on-chain recordkeeping for securities and other regulated financial instruments.
Seamless interoperability with multiple chains for liquidity and user accessibility.
Institutional-grade trust and compliance guarantees, enforced through an embedded governance and identity framework.
2. Nature of the T-REX Ledger
The T-REX Ledger launches as an Ethereum Layer 2 built on the OP Stack, leveraging Ethereum for security and data availability. It integrates zero-knowledge proofs for fast and reliable finality, ensuring transaction integrity and scalability.
Dual Security and Governance Model
To combine public settlement security and institutional trust, the T-REX Ledger introduces a dual validation architecture:
Ethereum Anchoring: all state roots are periodically posted to Ethereum, inheriting its proven decentralization and immutability.
Institutional Proof-of-Authority (PoA) Layer: a quorum of trusted validators co-sign and attest to key on-chain events.
This hybrid approach provides:
Ethereum-level settlement assurance.
Institutional oversight and governance for regulatory confidence.
In summary:
T-REX Ledger = Ethereum-anchored rollup (OP Stack) + Institutional PoA validation layer It merges Ethereum’s security with the governance and trust framework expected in regulated financial infrastructure.
3. Issuance Model
All canonical asset issuance occurs on the T-REX Ledger, which functions as the authoritative chain for tokenized financial instruments.
On the T-REX Ledger
Full implementation of ERC-3643, including:
Embedded identity management
Claim registries for KYC/AML and investor eligibility
Compliance logic enforced natively on-chain
On External Chains
Simplified distribution contracts, similar to permissioned ERC-20 tokens.
Transferability and permissions are derived from the compliance logic of the reference (T-REX) chain.
This model ensures:
The T-REX Ledger holds the “golden record” of ownership and balances.
External chains serve as liquidity and accessibility layers — secondary representations of the canonical assets.
4. Bridging Mechanism
Cross-chain movement follows a freeze / mint model, preserving canonical integrity:
Outbound Transfer
Tokens are frozen on the T-REX Ledger.
Equivalent tokens are minted on the destination chain.
Inbound Transfer
External tokens are burned.
Frozen tokens on the T-REX Ledger are unlocked.
Direct Mint-and-Bridge Flows
Issuers can mint on T-REX and deliver directly to another chain in a single transaction, streamlining initial distribution.
Synchronized Accounting
Transfers on external chains are automatically mirrored on the T-REX Ledger using frozen tokens, ensuring continuous reconciliation.
➡️ Result: The T-REX Ledger always maintains the canonical accounting of balances — no double issuance, no desynchronization.
5. Book of Record
The T-REX Ledger is designed to act as the regulator-recognized book of record for legal ownership of tokenized securities.
Transfer agents, custodians, and regulators can rely on it as the authoritative register.
External chains are treated as distribution and liquidity venues, not legally binding records.
This design makes T-REX unique: it positions itself as a compliance and reconciliation layer for digital assets, not a competitor to general-purpose blockchains.
6. Benefits by Stakeholder
For Financial Institutions
Regulatory confidence through PoA-based validation and Ethereum anchoring.
Simplified reconciliation across chains with a single authoritative ledger.
Interoperability without compromising compliance.
For Issuers
Single issuance point across all networks.
Automated compliance enforcement via ERC-3643.
Bridging and liquidity on external chains while maintaining legal control on T-REX.
For Investors
Transparent and verifiable ownership on a regulated chain.
Inter-chain liquidity without losing regulatory protection.
Instant, compliant transferability.
For Builders
Access to standardized smart contracts and dApps for issuance, compliance, and bridging.
Participation in an institutionally backed ecosystem (via the ERC-3643 Association).
Opportunities to build dApps in the future T-REX AppStore — custody tools, marketplaces, compliance modules, etc.
7. Governance
The governance of the T-REX Ledger combines on-chain transparency with institutional oversight:
PoA Validators: Operated by a consortium of regulated and reputable institutions.
T-REX DAO: Oversees protocol upgrades, parameter changes, and validator admission.
ERC-3643 Association: Maintains open standards, audits, and interoperability guidelines.
Together, they ensure:
Accountability to the community and regulators.
Controlled evolution under transparent governance.
Sustainable ecosystem growth aligned with compliance requirements.
8. Technology Stack
Settlement Layer
Ethereum (L1)
Provides anchoring, security, and data availability.
Execution Layer
T-REX Ledger (OP Stack Rollup)
Executes ERC-3643 smart contracts and manages canonical issuance.
Validation Layer
Institutional PoA Quorum
Trusted institutions co-sign transactions and attest to finality.
Bridging Layer
Freeze/Mint Protocol
Handles cross-chain transfers with canonical accounting.
Identity & Compliance Layer
OnchainID + Claim Registries
Provides verifiable identity and compliance enforcement.
API Layer
T-REX Engine
Developer gateway for issuance, transfer, and compliance operations.
9. Future Positioning
The T-REX Ledger will remain domain-specific — optimized for tokenized financial assets rather than general-purpose computation.
Future roadmap:
Expand the institutional PoA network.
Launch the T-REX AppStore for compliance-native financial applications.
Deepen interoperability with major L1/L2s for cross-chain liquidity.
Facilitate FHE integration for privacy
Evolve into the trusted financial substrate where regulated assets reconcile across all chains.
10. Privacy & Confidentiality (Optional FHE Layer)
10.1 Why add privacy / confidentiality?
Public blockchains offer transparency, but that transparency is often a blocker for large financial institutions and regulated markets. Some reasons:
Sensitive amounts: Firms may not want their transaction volumes, balances, or financial positions exposed publicly.
Strategic opacity: For trade execution, hedging, or portfolio adjustments, revealing flows can leak market strategy.
Regulatory / client confidentiality: Custodians, asset managers, and clients require privacy guarantees to comply with reporting laws, client privacy rules, and trade secrecy.
Risk management & segregation: Masking internal flows or positions can reduce front-running, MEV attacks, or exposure to on-chain arbitrages.
By offering a privacy layer as an option, T-REX can bridge the best of both worlds:
Public verifiability and auditability remain for those who want it.
Selective confidentiality for parties or flows that require privacy.
That optional privacy makes the T-REX Ledger far more palatable to major financial institutions — they can use a public blockchain while still protecting sensitive data.
10.2 What technology underpins the privacy option?
The privacy layer is built on Fully Homomorphic Encryption (FHE), leveraging ideas pioneered by cryptography projects like Zama (in their “Confidential Blockchain Protocol” and fhEVM) to enable computation over encrypted data.
Key properties of FHE (as applied here):
Encrypted data at rest and in operation Transaction amounts, addresses (or pseudonyms), and balances can remain encrypted, even while being processed by smart contracts.
Public verifiability of correctness Even though data is encrypted, validators (or proof systems) can verify that computations were done correctly (e.g. that balances add up, compliance constraints are met) without seeing the raw values. Zama’s design uses FHE + zero-knowledge proofs to guarantee integrity.
Programmable decryption / access control Smart contracts or compliance modules can define who is permitted to decrypt which data (e.g. a regulator, auditor, or the transacting parties). This is sometimes called programmable confidentiality.
Composability and interoperability FHE-based contracts can interoperate with non-confidential ones, enabling mixed workflows (some parts private, others public).
Post-quantum resilience Many FHE schemes are lattice-based, offering resistance against quantum attacks beyond classical cryptography.
10.3 How privacy fits into T-REX’s architecture
Here’s how the privacy option plugs into the existing T-REX Ledger model:
Opt-in privacy mode Privacy is optional, not mandatory. Issuers or specific transactions/settings can enable confidentiality.
Encrypted balances & transactions In private mode, account balances and transaction amounts are stored in encrypted form. Only authorized parties (e.g. sender, receiver, regulator) can decrypt.
Compliance logic on encrypted data Even though values are encrypted, counterparties or compliance modules can enforce rules (e.g. transfer caps, KYC checks) via FHE computation so that the contract can still validate without fully revealing amounts.
Bridging & canonical integrity
When bridging out, the encrypted state must align with the canonical (public) representation so auditors / the T-REX Ledger can confirm no discrepancy.
Cross-chain freeze / mint logic will need to work with both encrypted and non-encrypted modes, ensuring that canonical accounting remains consistent even in private mode.
Access control / audit decryption For audit, regulatory, or legal disclosure, there must be mechanisms (e.g. threshold decryption or key-sharing among trusted parties) for authorized decryption of selected data.
10.4 Benefits by stakeholder (with privacy)
Financial Institutions
Use a public blockchain (with Ethereum anchoring) while keeping internal flows and positions confidential.
Protect sensitive data from competitors, on-chain analysis, or front-running.
Satisfy client confidentiality and regulatory privacy mandates.
Issuers of Securities
Issue tokens transparently but allow private transfers or tranche-level privacy (e.g. for high-net-worth investors).
Shield sensitive holdings, distribution patterns, or capital flows.
Maintain compliance but avoid exposing proprietary investment structures.
Investors
Keep personal balances and transaction history private from public observers.
Enjoy the benefits of regulated, verifiable ownership without full exposure to the blockchain at large.
Selectively share decrypted proofs for audits or compliance only when needed.
Builders / Protocols
Build confidential dApps on top of T-REX that integrate privacy by default (e.g. private settlement layers, auctions, confidential lending).
Leverage standard APIs and smart contract templates that support both encrypted and transparent modes.
Increase adoption by offering privacy-first modules without reinventing cryptography.
10.5 Summary & positioning
Adding optional transaction confidentiality via FHE gives T-REX a massive strategic advantage:
It allows a public, auditable, anchored blockchain that also meets top-tier institutional privacy demands.
It bridges the gap between permissioned privacy (traditionally seen in private blockchains) and public blockchain integrity.
It strengthens T-REX’s positioning as the trusted compliance and reconciliation layer for regulated assets — offering both transparency and confidentiality.
In short: privacy is optional, but powerful — making T-REX suitable for real-world finance without compromising on blockchain principles.
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