SERC Sandbox Application

This presentation contains confidential regulatory information

SERC FINTECH REGULATORY SANDBOX LICENSE

RWA Tokenization & Digital Asset Custodian Services

Vision: Cambodia's digital finance transformation through regulated innovation.

THREE SERVICES. ONE PLATFORM. ONE SANDBOX.

KHRt Stablecoin

  • 1:1 KHR backing via NBC-licensed banks
  • Native Bakong integration
  • Multi-chain deployment (Selendra primary)
  • Gas-free transactions on Selendra
  • Foundation for all digital transactions

Digital Asset Custody

  • Institutional-grade security for Bitcoin and digital assets
  • Appropriate insurance coverage for sandbox scale
  • Multi-jurisdictional compliance frameworks

Real World Asset Tokenization

  • Government bonds (MEF partnership)
  • CSX stocks (fractional ownership)
  • Real estate (verified titles)
  • US stocks and commodities

Result

Every Cambodian can invest, starting at $10

SERC Oversight
KHRt → Custody → Tokenization
Bakong Integration

MULTI-CHAIN SECURITY STRATEGY

Primary Deployment: Selendra

  • Main KHRt operations on Selendra blockchain
  • Gas-free transactions for all users
  • No bridge attack vulnerabilities
  • Direct regulatory oversight alignment
  • Cambodian-developed infrastructure

Cross-Chain Expansion

  • Secondary deployments: Ethereum, Base, Polygon
  • Standard network gas fees apply
  • Expanded accessibility for global users
  • Interoperability with DeFi ecosystems
  • Secure asset bridging protocols

Security Benefits

Bridge Attack Prevention

Primary Assets on Selendra
Minimal Bridge Exposure
Maximum Security

BUSINESS MODEL & REVENUE

Revenue Streams

  • Mint fees: KHR/USD → KHRt conversion
  • Burn fees: KHRt → Bank account withdrawal
  • Custody fees: Digital asset management
  • Tokenization fees: Asset fractional ownership

Yield Generation

  • Bank partner deposit accounts earn interest
  • Conservative yield strategies
  • NBC-licensed bank partnerships
  • Transparent reserve management

Gas Model

  • Free: All Selendra network transactions
  • Standard: Ethereum, Base, Polygon fees
  • User-friendly: No hidden costs
  • Transparent: Clear fee structure

KHRt USE CASES & APPLICATIONS

Daily Transactions

  • Digital payments and remittances
  • E-commerce and online services
  • Bill payments and utilities
  • Cross-border transfers
  • Merchant payment solutions

Investment & Savings

  • Gateway to tokenized assets
  • Micro-investment enabling ($10 minimum)
  • Digital savings accounts
  • Fractional bond ownership
  • Portfolio diversification tool

Financial Inclusion

  • Banking for the unbanked
  • Rural area financial access
  • Smartphone-based banking
  • Low-cost international transfers
  • Financial literacy integration

DeFi & Advanced Use Cases

  • Collateral for decentralized lending
  • Liquidity provision rewards
  • Staking and yield farming
  • Cross-chain DeFi participation
  • Smart contract automation

SANDBOX REQUEST

Scope

25,000 users
$2.5M assets
24 months

Purpose

Test viability before seeking full operational licenses

Innovation

Cambodia's first unified digital finance sandbox

Commitment

Prove concept. Perfect compliance. Future licensing pathway.

IMPLEMENTATION

Phase 1 (Months 1-12)

KHRt launch → Digital custody → Government bonds

Phase 2 (Months 13-24)

Corporate stocks → Real estate → Commodities

Milestones

Month 6
1,000 users, $100K managed
Month 12
5,000 users, $500K managed
Month 18
15,000 users, $1.5M managed
Month 24
25,000 users, $2.5M managed

PROTECTION FRAMEWORK

Consumer Safety

  • Mandatory financial literacy (Khmer/English)
  • Personalized risk assessment
  • 24/7 customer support with independent arbitration

Financial Security

  • NBC-licensed bank reserves with sandbox-appropriate insurance
  • FIPS 140-2 Level 4 security standards
  • Real-time reserve monitoring and monthly audits

Market Stability

  • Daily asset valuations with regulated market makers
  • Automated circuit breakers and compliance monitoring
  • Public reserves dashboard

SUCCESS METRICS

Operational Excellence

99.95% uptime
ZERO fund losses
<15s transaction processing

Regulatory Compliance

PERFECT compliance record
TIMELY regulatory reporting
<2% customer complaints

Market Validation

>90% user retention
25,000 active users
$2.5M assets under management

ECONOMIC IMPACT

Phase 1 Results

  • 25% reduction in cross-border payment costs
  • Gas-free transactions on Selendra network
  • 500+ fintech jobs created
  • 3+ NBC-licensed bank partnerships

Phase 2 Transformation

  • $50M+ tokenized government bonds
  • 15,000+ new retail investors
  • Cross-chain DeFi ecosystem participation
  • Regional digital finance leadership

Post-Sandbox Vision

  • Multi-chain deployment across major networks
  • Full operational licenses
  • Expanded user base and asset limits
  • Cambodia as regional fintech hub

Revenue & Sustainability

Self-Sustaining Business Model

Mint/Burn Fees + Bank Yield
Custody & Tokenization Revenue
Sustainable Growth

REGULATORY Q&A

Multi-Regulator Coordination

How will you coordinate with NBC, MEF, and other authorities? +

NBC oversees KHRt stablecoin reserves. MEF partnerships develop during Phase 2. SERC maintains primary oversight. Clear escalation protocols ensure seamless coordination.

Cross-border compliance for US assets? +

US-regulated broker accounts for asset acquisition. Tokenization occurs domestically under SERC oversight. Clear separation: US compliance for underlying assets, Cambodian regulation for tokenized securities.

Specific regulatory reliefs requested? +

Testing digital asset custody without full banking license. Tokenizing securities under sandbox parameters. Streamlined KYC for $10 minimum investments.

Financial Structure

Capital adequacy vs. $2.5M asset limit? +

$2.5M = total assets under management (user + company assets). Separate operational capital fund. Asset backing remains untouched except for strategic rebalancing. Formula: Cash + Bonds > Tokens in circulation.

NBC bank partnership status? +

ACLEDA Bank expressing strong interest as custodian. Initial $100K deposit for KHRt circulation. User deposits held in segregated accounts. Formal agreements pending sandbox approval.

Insurance coverage details? +

Seeking international digital asset insurance (Lloyd's of London, Coinbase Insurance). Coverage targets: Custodial risk, smart contract failure, operational errors. Alternative: Self-insurance fund during sandbox phase.

Technology Infrastructure

Multi-chain deployment strategy? +

Primary deployment on Selendra (gas-free transactions, bridge attack prevention). Secondary deployments on Ethereum, Base, Polygon for cross-chain accessibility. Assets primarily secured on Selendra with minimal bridge exposure.

Smart contract audits? +

CertiK partnership for comprehensive security audits. Pre-launch, quarterly, and post-upgrade audits. Public audit reports for transparency. Cross-chain deployment audits for each network.

Data privacy compliance? +

GDPR-equivalent standards. Encrypted data storage. Minimal data collection principle. User consent management. Data residency within Cambodia for sensitive information.

Business Model & Revenue

How do you generate revenue during sandbox? +

Mint/burn fees for KHRt conversion. Custody management fees. Yield generation from NBC bank partner deposits. Tokenization service fees. Transparent fee structure with competitive rates.

Yield generation mechanism? +

User deposits held in NBC-licensed bank accounts earning conservative interest rates. Yield shared between reserves strengthening and operational sustainability. Full transparency through monthly reserve reports.

Cross-chain gas fee model? +

Selendra: All transactions completely gas-free for users. Ethereum/Base/Polygon: Standard network fees apply, clearly communicated to users. No hidden fees or markup on network costs.

Security & Risk Management

Bridge attack prevention strategy? +

Primary assets remain on Selendra, minimizing bridge exposure. Cross-chain deployments use proven bridge protocols with insurance coverage. Conservative cross-chain asset limits during sandbox phase.

Multi-chain compliance framework? +

Selendra operations under SERC oversight. Cross-chain compliance through established regulatory frameworks in each jurisdiction. Clear separation of operational responsibilities per network.

Asset security across networks? +

Multi-signature controls on all networks. Hardware security modules for key management. Real-time monitoring across all deployments. Emergency pause capabilities on all smart contracts.

THE ASK

SERC sandbox approval for a 24-month pilot to test and validate digital finance services before seeking full operational licenses.

Our Promise: Prove viability. Perfect compliance. Clear path to permanent licensing.

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