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Tokenization Lifecycle

The Tokenization Lifecycle: A Mechanical Workflow

The process of tokenizing an asset follows a structured technical workflow:

  1. Asset Sourcing and Due Diligence: The first step is off-chain. The asset to be tokenized (e.g., bonds, equity, art) is legally vetted and placed within a legal structure, often a Special Purpose Vehicle (SPV), that establishes clear ownership.
  2. Configuration and Smart Contract Deployment: The asset issuer uses the our platform to configure the token's parameters. This information is then used to deploy a unique ERC-3643 compliant smart contract onto the Ethereum blockchain.
  3. Token Minting and Issuance: Once the smart contract is live, the minting process is triggered. The total supply of tokens, representing total ownership of the underlying asset, is created and deposited into the offer's digital wallet.
  4. Distribution and Primary Sale: The issuer distributes the tokens to initial investors. This can be done through a Security Token Offering (STO) managed on the platform. The platform's interface handles the subscription process, payment, and transfer of tokens to qualified investor wallets.
  5. Secondary Trading: Post-issuance, the smart contract continues to govern the token's existence. The platform facilitates lifecycle management, including handling dividend distributions, voting, and compliance reporting. Tokens can then be traded on a secondary market, with every transaction being validated by the smart contract against the on-chain compliance rules.