Where the underlying shares live, who holds them, and what happens to your tokens if GM Markets discontinues operations.
Every tokenized share on GM Markets is fully backed by a corresponding share in a segregated customer account at a regulated US broker-dealer such as Alpaca Markets or Interactive Brokers. Customer assets at these brokers are held separately from the broker's own funds, under the applicable investor-protection arrangements that apply to segregated client accounts.
The underlying shares backing every tokenized asset on GM Markets are held in segregated customer accounts at regulated US broker-dealers such as Alpaca Markets and Interactive Brokers, operating under the supervisory frameworks of their respective jurisdictions. The shares remain available to token holders independently of GM Markets' or any single broker's commercial status.
Your assets remain protected through a designated security agent (GenTwo) who works directly with the custodian to redeem outstanding tokens against the underlying shares for token holders. The redemption path is enforced by the on-chain contract and is independent of GM Markets' continued operation.
In other words, the value of your tokens is held in segregated customer accounts at the custodian, not on GM Markets' balance sheet. The security agent has standing authority to act on token holders' behalf to settle and return value to token holders.
Reserves are independently attested by a third-party proof-of-reserves provider that reads share balances directly from the broker accounts and publishes the attested figures on-chain in real time. You can verify the live backing ratio for any asset on the Proof of Reserves page.
