Core Concept

Axion Vault provides a simple but powerful model for bringing liquidity to tokenized real-world assets. The system works by allowing an issuer to create a dedicated on-chain vault and deposit verified RWA tokens inside it. Once the collateral is secured, the vault issues Asset-Backed Tokens (ABTs), which represent proportional claims on the underlying assets. These ABTs are standard, fungible tokens that can move freely across the supported blockchain networks.

With ABTs, investors gain the ability to hold, trade, or earn yield from real-world assets in a fully on-chain environment. Income generated by the underlying assets—such as interest, rent, dividends, or royalties—is transferred on-chain and distributed automatically to ABT holders. Issuers benefit by unlocking liquidity without selling their assets, while investors gain transparent exposure to real-world economic performance through a simple and familiar token format.


Technical Integrity

Each vault operates as a legally and technically separate environment designed to protect both issuers and investors. The system ensures:

  • Independent verification of collateral and valuations

  • Transparent proof-of-reserves that anyone can check

  • Automated minting and redemption rules based on collateral quality

  • Reserve buffers and a backstop fund for additional stability

  • Governance oversight from the Axion DAO

These protections make each vault predictable, transparent, and aligned with institutional standards.


Supported Token Standards

Axion Vault supports a wide range of token formats used by regulated issuers, custodians, and tokenization platforms. This flexibility allows the protocol to work with many existing tokenization systems without forcing issuers to change their technology stack.

Standard
Chain family
Primary use
Key features

uRWA (ERC-7943)

EVM

Tokenized real-world assets

Compliance functions such as freeze, forced transfer, allowlists; metadata for regulatory attributes

ERC-20

EVM

Fungible tokens

Most widely adopted interface for transferable fungible tokens

ERC-3525

EVM

Semi-fungible / tranche-based assets

Combines fungible and non-fungible properties; ideal for structured products

ERC20-STV3

EVM

Security tokens

Permissioned transfers, identity enforcement, MiCA-aligned compliance flows

ERC-1404 (legacy)

EVM

Restricted security tokens

Simple compliance rules with transfer restrictions

SPL Token (Solana)

Solana

Fungible tokens

Extremely fast minting, transferring, and settling under Solana's runtime


Multichain and Cross-Chain Architecture

Axion Vault operates across multiple blockchains to give issuers and investors flexibility while maintaining a single, consistent source of truth for each vault.

Chain Roles

  • Arbitrum serves as the primary chain for most vaults. It hosts governance, the official ABT supply, and the main yield distribution system.

  • Solana is available for issuers that need very high throughput or frequent yield distribution. In these cases, ABTs are created as native SPL tokens.

  • Other EVM chains host read-only mirror contracts that reflect vault state and enable additional liquidity without holding minting authority.

How Cross-Chain ABTs Work

Axion Vault ensures that ABTs remain consistent across all supported chains. To prevent fragmentation:

  • ABTs can only be created by the canonical vault contract

  • Cross-chain ABTs use a lock-and-mint or burn-and-mint model

  • Total supply always matches the collateral backing in the vault

This ensures the tokens remain trustworthy no matter where they are traded or used.

State and Yield Across Chains

To keep everything synchronized:

  • Vault updates such as valuations, parameters, or pause states are broadcast across all connected chains

  • Yield distribution always begins at the canonical vault, then updates balances on other networks

  • Compliance requirements follow the tokens wherever they move

This allows users on different blockchains to interact with the same underlying real-world assets in a unified and secure way.


Summary

Axion Vault’s core concept transforms verified real-world asset tokens into liquid, yield-generating instruments that can circulate across multiple blockchain networks. The system supports a wide range of token standards, offers flexible deployment on both EVM chains and Solana, and maintains consistent collateral and compliance rules across the ecosystem. By simplifying the movement and use of tokenized assets, Axion Vault provides a reliable bridge between institutional finance and decentralized markets.


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