Wallet Architecture & Transaction Model

The wallet architecture of Stobox 4 is designed to provide secure, compliant, and predictable custody and transaction flows for all participants in the tokenized asset ecosystem. The system uses two specialized wallet types - MPC Wallets for individuals and Operational Vaults for businesses, each optimized for its specific role within the platform.

Unlike traditional blockchain applications, where wallets operate freely and independently, Stobox 4 wallets operate within a regulated, identity-bound environment, where all actions pass through compliance validation and interact seamlessly with STV3 programmable-asset logic.

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Overview of Wallet Architecture

There are two core wallet models within Stobox 4:

• MPC Wallets - issued to individual investors

• Operational Vaults (Embedded Wallets) - issued to corporate issuers

Each performs a different function and is subject to different rules and controls.

Feature	Individual Investor	Business Issuer
Wallet Type	MPC Wallet	Operational Vault (Embedded Wallet)
Purpose	Custody of assets & payments	Settlement, payouts, operational balances
Holds Tokenized Assets	Yes	No
Holds Stablecoins	Yes	Yes
Controlled By	Individual	Business operators
Compliance Checks	DID-based	DID-based
Interaction With STV3	Direct token custody	Triggering corporate actions

This dual architecture ensures secure custody for individuals and properly controlled financial operations for businesses.

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MPC Wallets for Individuals

MPC wallets (Multi-Party Computation wallets) provide individuals with secure, self-custodial storage for both stablecoins and tokenized assets.

Key Characteristics

• No seed phrase

• Private key never exists as a single piece

• Multi-party cryptographic signing

• High resistance to compromise

• Direct integration with STV3 transfers

Role in Stobox 4

MPC wallets are used for:

• participating in STOs

• receiving tokenized assets (STV3 tokens)

• holding tokenized securities or other programmable assets

• receiving distributions from issuers

• executing transfers (if permitted by STV3)

• interacting with lifecycle events (voting, redemption, claims)

Compliance Integration

Every action initiated from an MPC wallet triggers:

1. DID validation

2. Compliance rule enforcement

3. STV3 contract authorization

Therefore, even though the investor has custody of their assets, they cannot perform actions that violate asset rules.

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Operational Vaults (Embedded Wallets) for Businesses

Businesses do not receive MPC wallets. Instead, they operate through Operational Vaults, which are secure, embedded Fireblocks wallets designed for financial operations, not token custody.

What the Vault Holds

• Stablecoins (USDC, etc.)

• Native tokens for gas

• Operational balances

What the Vault Does Not Hold

• Tokenized assets

• Security tokens

• STV3 balances

Token control is always on-chain through the STV3 protocol, not stored in any issuer wallet.

Vault Use Cases

The Operational Vault is used for:

• receiving investor subscription funds

• executing distributions (dividends, interest, revenue share)

• making redemption or repayment payouts

• covering gas fees for deployments and corporate actions

• facilitating settlement during STOs

Why Issuers Do Not Custody Their Own Tokens

To ensure:

• regulatory safety

• auditability

• immutability of token rights

• avoidance of improper access or manipulation

STV3 handles all token issuance, treasury logic, freezing, redemption, and burning.

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Transaction Pathways in Stobox 4

Transactions within Stobox 4 follow a structured model. They fall into three major categories:

Payment Transactions (Stablecoins)

Flow: Investor MPC Wallet → Issuer Vault → (Issuer actions)

Used for:

• STO subscriptions

• distributions

• redemptions

• refunds

• payouts

Every stablecoin movement undergoes:

• DID-based validation

• KYT transaction risk checks

• Offering or asset-specific compliance logic

Token Transactions (STV3 Assets)

Flow: STV3 Contract → Investor MPC Wallet

Token transfers never bypass STV3.

They require:

• identity validation

• rule-based authorization

• compliance checks

• event-specific constraints

Examples:

• STO allocation

• vesting releases

• redemptions

• P2P transfers (if enabled)

Hybrid Transactions

Some actions require both wallets and smart contracts, e.g.:

• distributing dividends

• executing corporate buybacks

• redemptions of debt tokens

Flow:

1. STV3 validates who is eligible

2. Operational Vault executes stablecoin payments

3. STV3 updates token balances accordingly

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Compliance Enforcement in Every Transaction

Transaction security in Stobox 4 is not only cryptographic—it is regulatory.

Every action, whether a stablecoin movement or token movement, is validated through three enforcement layers:

Layer 1: Identity (DID)

Ensures:

• the actor is verified

• jurisdiction rules apply

• investor category is appropriate

Layer 2: Compliance Rules

Checks:

• eligibility

• offering-specific limitations

• lock-ups, vesting, blacklisting

• maximum holding or investment limits

Layer 3: Smart Contract Authorization (STV3)

If any rule fails, the contract rejects the transaction.

This ensures:

• no unauthorized transfer

• no illegal subscription

• no non-compliant distribution

• no transfer to a sanctioned or unverified party

This model goes beyond traditional crypto wallets, creating regulated digital value flows.

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Gas, Fees, and Execution Considerations

Issuers

Operational Vaults hold gas for:

• deploying STV3 contracts

• executing distributions

• minting or burning tokens

• managing treasury operations

Investors

Investors’ MPC wallets hold:

• enough gas to receive assets

• gas for transfers (if allowed)

Gas usage is optimized to avoid unnecessary costs and to ensure predictable operations.

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Security & Safeguards

Stobox 4 integrates advanced protection across all wallet types:

For MPC Wallets

• multi-party signing

• no seed phrase risk

• wallet recovery flows

• isolation of cryptographic shares

• API guardrails

For Operational Vaults

• Fireblocks secure-enclave signing

• role-based transaction approval policies

• internal segregation of duties

• comprehensive audit logs

For Tokenized Assets

• STV3 enforces all token-level security

• DID validation prevents unauthorized holders

• immutable event history supports audits

Together, these layers form a security model suitable for regulated financial markets.

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Summary

The wallet architecture of Stobox 4 combines MPC wallets for individuals with Operational Vaults for businesses, creating a secure, compliant, and predictable environment for managing tokenized assets and stablecoin-based settlements. All value flows are governed by DID identity checks, compliance rules, and STV3 on-chain authorization, ensuring that every action - from STO subscriptions to corporate distributions operates within a legally aligned and technically enforced framework. This approach provides institutional security, regulatory integrity, and a streamlined user experience across the entire tokenization ecosystem.

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