Regulatory & Compliance Approach

Spout is built to meet the expectations of institutions, without compromising the integrity of on-chain finance. Our model ensures that each tokenized asset is backed 1:1 by real, auditable securities held with a regulated broker-custodian. These custodians—such as Alpaca or Clear Street—are licensed to handle ETFs and report daily positions, which Spout uses to drive NAV logic and proof-of-reserve disclosures.

While Spout itself does not currently operate as a broker-dealer, the platform is designed to integrate with broker-dealer partners and custody providers to handle regulated activity off-chain. Token issuance and minting are tightly coupled to on-chain oracles and off-chain compliance reports, allowing for full auditability without requiring users to directly engage with off-chain infrastructure.

Looking ahead, Spout is committed to aligning with MiCA (Markets in Crypto-Assets Regulation) to support compliant access for institutional users across the European Union. As global frameworks like MiCA, Reg D, and Reg S mature, Spout will expand access through structured, jurisdiction-specific channels—ensuring legal clarity and enterprise-grade credibility while maintaining the programmability and composability of crypto-native assets.