# What rwaUSD Is and What It Is Not

**rwaUSD is designed specifically for highly liquid, institutional-grade assets**, such as:

* Short-duration Treasury-backed instruments (T-Bills)
* Highly liquid tokenized gold
* Other deep, continuously priced public-market RWAs

<figure><img src="/files/Q5dqmVW3aEwF1zHoymGE" alt=""><figcaption></figcaption></figure>

These assets share critical properties that make them compatible with DeFi liquidation engines: predictable pricing, strong secondary liquidity, and fast redemption paths. To further strengthen trust and robustness, **rwaUSD** is designed to incorporate an insurance framework underwritten by **Lloyd’s of London**, intended to provide coverage against certain adverse events affecting the underlying collateral and designed to cover risks related to:

* De-pegging of the underlying collateral
* Certain regulatory disruption scenarios
* Fraud or failure at the collateral or custody layer

This combination of a **highly liquid collateral plus insurance protection** is what allows rwaUSD to function as a broadly composable DeFi collateral primitive. At the same time, **not all tokenized assets are suitable for rwaUSD**. Assets such as private equity, private credit, structured funds, or vehicles with delayed redemption windows behave very differently under stress. Multipli supports these assets through **separate, segmented liquidity classes**, rather than forcing them into a single system and weakening overall solvency.


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