Blockchain infrastructure for real world assets
The legal wrapper you choose for the underlying asset determines the entire token architecture. SPV, trust, or direct ownership each impose different transfer restrictions, custody requirements, and distribution mechanics. The solution includes the on chain layer that encodes those constraints so the token is enforceable, not just tradeable.
We solve the structural problems that block tokenized offerings from closing.
Fractional ownership with enforceable transfer restrictions
Splitting an asset into tokens creates a security. That means Reg D, Reg S, MiFID II, or the EU DLT Pilot Regime governs every transfer depending on the investor and the jurisdiction. Most tokenization platforms issue a generic ERC20 with no transfer hooks, leaving the issuer one secondary sale away from an unregistered distribution. Without contract level restrictions, the token is legally inert.
The solution includes ERC1400 and ERC3643 compliant token contracts that encode investor eligibility, holding period lockups, and per jurisdiction transfer rules directly into the token logic. The on chain cap table updates atomically on every settlement. Accreditation and KYC status resolve before a transaction confirms, not after. Each token class maps to the legal wrapper of the underlying SPV or trust, so the on chain record and the legal ownership record stay synchronized.
Dividend distribution across partial ownership, jurisdictions, and tax regimes
Rental income and dividends need to reach fractional holders in correct proportions, net of jurisdiction specific withholding tax, on a schedule that satisfies both the operating agreement and local securities law. Partial ownership means entitlements calculate to arbitrary decimal precision. Multiple jurisdictions mean different withholding rates on the same distribution event. Spreadsheets and batch transfers collapse under this complexity.
The system provides distribution contracts that snapshot holder balances at the record date, calculate gross entitlements proportionally, apply configurable withholding rates per investor jurisdiction, and push net payments directly to holder wallets. Tax withholding records publish on chain so each investor has an auditable trail for local filing. Your fund administrator approves the distribution parameters and the contracts execute settlement across the full cap table in a single transaction batch.
Transfer restrictions that make the token a security, not a liability
Transfer restrictions are not a feature toggle. They are the legal boundary between a compliant security token and an unregistered offering. If a restricted investor acquires tokens through an unvalidated peer to peer transfer, or if settlement occurs in a sanctioned jurisdiction, the issuer faces enforcement action. Frontend gates and middleware filters fail silently. The contract must be the final authority.
The system embeds transfer validation logic at the EVM level so every transfer call resolves investor whitelist status, accreditation expiry, Reg D/S holding period locks, and OFAC screening before the state transition executes. Failed checks revert the transaction. No partial settlement, no post trade remediation. The token contract becomes the single source of truth for who can hold, who can transfer, and under what conditions, independent of any application layer.
A Reg D fund with $40M in commercial real estate needed to tokenize LP interests for accredited US and offshore investors.
The fund holds four commercial office properties across two states through a Delaware SPV structure. They want to issue security tokens representing LP interests to accredited US investors under Reg D 506(c) and to non US investors under Reg S. The existing transfer agent cannot enforce the 12 month Reg D holding period, validate accreditation on secondary transfers, or distribute quarterly rental income net of withholding to investors in three tax jurisdictions. They also need custody attestation proving the SPV still holds title to each property.
The solution includes an ERC1400 token contract with partition logic separating Reg D and Reg S tranches. Transfer hooks validate accreditation status, holding period compliance, and jurisdiction eligibility before every settlement. Quarterly rental income distributes through a snapshot contract that calculates gross entitlements, applies jurisdiction specific withholding, and pushes net USDC to investor wallets. A custody attestation module publishes cryptographic proof linking each token tranche to title records held by the licensed custodian. Secondary trading routes through an ATS integration with the same transfer restriction logic enforced at the contract level.
- Token standard
- ERC1400, partitioned
- Transfer validation
- Reg D/S enforced per trade
- Distribution
- Quarterly, net of withholding
- Custody proof
- On chain title attestation