Architecture Overview

Syncrate’s architecture is built around a Canonical Entry & Exit Model, designed for permissioned RWA ecosystems where each issuer operates inside its own isolated environment. Today, moving capital between issuers is slow and operationally heavy because every asset can only be minted, redeemed, or transferred through its issuer’s canonical gateway. Syncrate solves this by orchestrating the entire multi-step workflow end-to-end

1. Identity & Compliance Boundary

Before any request enters the system, Syncrate performs a unified compliance check to ensure the user is eligible to interact with the target issuer.

Functions

• Onchain KYC/KYB verification through approved identity providers and issuer attestations.

• Issuer-level allowlist checks to confirm permission to enter each issuer’s gateway

• Jurisdiction + sanctions screening

• Cross-issuer eligibility mapping (who is allowed to access which canonical gateway)

This guarantees that every workflow executed downstream already meets the regulatory requirements of all issuers involved.

2. Canonical Exit Layer

After the user’s permissions are validated, Syncrate initiates a canonical exit from the source RWA.

This step interacts directly with the issuer’s redemption contract or off-chain redemption workflow, depending on the asset.

Key behaviors:

• Syncrate never deploys its own redemption logic. It uses the issuer’s native redemption process (e.g., Ondo’s OUSG redemption flow).

• The user’s source asset is burned, redeemed, or processed according to the issuer’s rules.

• Settlement is received in the issuer’s designated asset — most commonly USDC, but certain issuers may settle in other stable denominations.

• The exit is final; Syncrate does not hold or wrap the user’s RWA at any point.

By enforcing canonical exits, Syncrate ensures that all subsequent steps operate with clean, issuer-verified settlement assets.

3. Stable-Settlement Bridging

Once redemption completes, Syncrate holds canonical USDC (or the issuer’s stable equivalent). This asset becomes the standardized settlement currency for routing across chains.

Syncrate moves this settlement asset using only issuer-compliant bridging systems, prioritizing reliability and verifiable finality:

• Native USDC cross-chain transfer mechanisms (e.g., USDC on-chain mint/burn infrastructure)

• CCTP/CCIP

• Or other approved settlement bridges supported by the issuer ecosystem

This ensures no wrapped tokens, synthetic representations and no liquidity pools/swap layers. The bridging layer acts purely as a chain transport step, not a liquidity intermediary.

4. Canonical Entry Layer

After bridging, the settlement asset arrives on the chain where the target RWA issuer operates.

Syncrate then initiates a canonical entry or issuance request into the destination asset.

This mirrors the logic of the canonical exit, but in reverse:

• Syncrate interacts directly with the issuer’s official minting or subscription interface.

• The settlement stablecoin is transferred to the issuer.

• The issuer mints new canonical tokens to the user’s wallet.

• The user receives native RWA tokens, not wrapped or intermediary assets.

This mechanism guarantees that every route ends with issuer-originated tokens while maintaining regulatory and operational alignment with the underlying issuers’ frameworks.

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Routing Workflow

The following diagram provides a high-level overview of how Syncrate processes tokenized RWA routing requests end-to-end. It illustrates the interaction between the routing engine, on-chain adapters, external RWA issuers, and settlement layers. This view is meant to give developers and integrators a clear understanding of the system’s core flow before diving into individual components in detail.