At XBase Virtual Assets Broker & Dealer Services LLC (XBase Digital DED) we do not provide custody services for client assets. Instead, we rely on Fireblocks, which acts as the custodian of digital assets in accordance with its own regulatory authorizations. To ensure the integrity and security of these arrangements, we engage only with providers that have undergone rigorous due diligence, including an assessment of their regulatory status, structured internal approval processes, and robust risk management practices. For long-term custody, we intend to appoint only entities that offer asset segregation or comparable safeguards.

We do not hold any assets or maintain funds or Virtual Assets or provide clearing services for other VASPs providing Broker-Dealer Services.

Protecting client assets is a core priority, and we implement robust measures to ensure their safety:

• Secure Infrastructure: We partner with regulated custodians and banks that utilize advanced encryption and multi-layered security protocols to safeguard client funds and digital assets.
  

• Segregation of Client Funds and Assets: Client funds and assets are strictly segregated from our operational accounts. This clear separation provides additional protection and ensures transparency.
  

• Regular Audits: We conduct routine internal and external audits, along with frequent reconciliation processes, to verify the accuracy and integrity of client holdings.
  

• Insurance Coverage: Our custodian has secured insurance coverage to provide additional protection for client assets, subject to the terms and limits of the policy.
  

• Regulatory Compliance: We fully comply with applicable regulatory standards, including those set by VARA and the CBUAE, aligning our practices with industry best standards.
  

We value the trust our clients place in us and remain committed to continuously enhancing the systems and controls that safeguard their assets. For any questions or further information, please feel free to contact us