How is the regulation of USDH guaranteed?

HonestNode works with Koi Compliance, a San Francisco-based provider backed by Binance Labs, to ensure that USDH complies with all applicable legal requirements, including U.S. federal and state money transmission laws and AML/CFT rules. Among other things, USDH follows all requirements of a FinCEN-registered MSB and perform thorough identification verification, due diligence, beneficiary ownership checks, sanctions screening, transaction monitoring, and regulatory reporting. Additionally, HonestNode works with Cohen LLP to issue audited assertions from time to time to ensure that USDH is backed by USD 1:1.

USDH's custody system is identical to that of TrueUSD. Specifically, all USD amounts used to purchase USDH are placed into a custody account controlled by Prime Trust LLC, a Nevada-chartered trust company. USDH's operational staff and management members have no legal claim to such USD collateralization amount.

HonestNode will, for USDH, comply with all applicable legal requirements on an on-going basis. We will therefore continue to work with regulators in fulfillment of certain of these obligations (e.g., regulatory reporting and assets blocking).