Here’s an overview of how Composite Asset Tokens Work

1. Issuance on the Pecu Novus Blockchain

A company seeking to issue a Composite Asset Token “CAT”, first have to decide on how many common shares would be locked by a Transfer Agent or Custodian.

Then the creation of a CAT on the Pecu Novus Blockchain takes place.

Once decided on the amount of common shares to be locked, an Equity Token, which is a digital representation of the underlying stock locked with the transfer agent, needs to be created solely representing the locked shares.

Next a multi-asset Digital Asset Treasury needs to be create that will collateralize the CAT.

Each CAT is:

Staked by PECU Coins alone or a combination of PECU, stablecoins, wrapped tokens and either an Equity Token or both a Revenue and Operational obligation token. 

The details, data and Digital Asset Treasury is viewable and transparent for each CAT.

Structured as a perpetual digital asset. 

2. Smart Contract Setup & Execution

A smart contract governs the entire structure:

Digital Asset Treasury collateralization validation: Verifies that the multi-asset Digital Asset Treasury has the required PECU Coins, Equity Tokens, Revenue and Operation Obligation Tokens or other digital assets locked and publicly viewable.

3. Listing on HootDex

Once issued, CATs are listed on HootDex for price and data discovery as well as confirmation of the collateralization of a multi-asset Digital Asset Treasury for the issuance. 

After the issuer defined lock-up period then the CAT would be available to swap on HootDex, swappable on the OTC Desk and other centralized or decentralized platforms that may list PECU and Pecu Novus blockchain digital assets.

Afterwards Investors will be able to acquire CATs on HootDex and Institutions will be able to swap and acquire via the OTC Desk.

CATs become fully tradable in a peer-to-peer environment once lock up period expires, without needing centralized intermediaries.

Smart contracts manage all transaction logic, removing counterparty risk.