Hi,
I’ve been digging into the crediting flow of Holdings and as far as I can see any Custodian of an Account (along with the owner authorization) might create Holdings of an Instrument without the Issuer authorization. Am I missing something?
Disclaimer: I’m not familiar with processes for creation of Instrument Holdings.
Thanks!
Hi @jvelasco.intellecteu,
What you state is correct: an (unlocked) holding has two signatories, namely the custodian
and the owner
.
Holdings represent financial obligations between a custodian
and an owner
. The instrument referenced by a holding determines what these obligations are (e.g., currency tokens, shares, bonds, …). The authorisation of the instrument issuer
is generally not required.
An analogy to a real-world example is the following:
- we can write on a piece of paper that I owe you
100 USD
(we are creating a holding where I am the custodian
and you the owner
)
- the authorisation of the Federal Reserve (the issuer of the USD instrument) is not required for this
I hope that clarifies your question.
Matteo
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