Tokenization Protocol
Abstract
Propchain Cloud stands as a leading provider of real-world asset (RWA) tokenization infrastructure, operating on our own robust platform. Our mission is to revolutionize asset management by offering seamless tokenization solutions tailored to various asset classes, including real estate, commodities, and intellectual property. With a focus on security, transparency, and compliance, Propchain empowers investors and asset owners to unlock the full potential of tokenized assets in the emerging Web3 ecosystem.
Real-World Assets (RWA)
Real-world assets (RWA) represent tangible or intangible assets existing in the physical world, such as real estate properties, commodities, and intellectual properties. Historically, these assets have been managed through centralized systems, often involving intermediaries and complex processes.
Blockchain and Tokenization
The emergence of blockchain technology has revolutionized this landscape. Blockchain, a decentralized and immutable ledger, enables transparent, secure, and efficient transactions across a network of computers. This technology offers unprecedented opportunities, particularly in asset tokenization.
Tokenization is the process of representing real-world assets as digital tokens on a blockchain. These tokens are programmable, divisible, and can be transferred peer-to-peer instantly, without intermediaries. This process unlocks liquidity, facilitates fractional ownership, and streamlines asset management.
Our Services
Propchain provides comprehensive infrastructure and tools for seamless asset tokenization. Our platform offers:
Asset Tokenization: We facilitate the tokenization of various real-world assets, including residential and commercial real estate, fine art, and collectibles. Through our platform, asset owners can tokenize their assets, enabling fractional ownership and broader investment opportunities.
Smart Contracts: Our smart contract technology ensures secure and trustless transactions. Smart contracts automatically execute predefined terms and conditions once specified conditions are met, reducing the need for intermediaries and mitigating the risk of fraud.
Compliance: We prioritize regulatory compliance to ensure our platform adheres to legal standards and industry best practices. Our compliance protocols mitigate risks and build trust among investors and asset owners.
The following sections provide a detailed overview on the approaches taken by our team.
Token Standards
Core to the tokenization is a set of smart contracts deployable on EVM chains to represent securities, compliance mechanisms, asset issuance and access control mechanisms. The following section will give an overview on the unique features provided by Propchain's regulatory compliant investment system.
ERC-1155e - Propchain Security Token Standard
The SecurityToken contract, developed on the ERC1155 standard, facilitates the tokenization of real-world assets (RWA) as securities on the blockchain. It serves as an infrastructure for managing the creation, minting, and transfer of security tokens. Doing so, a new extended version of the ERC1155 standard was created representing the foundation for tokenizing arbitrary real world assets exceeding realms of real estate.
The contract is designed to handle various aspects of security token management, including property creation, minting, and transfer. It includes structures and functions to facilitate these functionalities. It manages property data, including name, maximum supply, jurisdiction, and price, maintaining a registry of security tokens, tracking minted supply and token existence. Supporting transfer limitation and modifier modules, Propchain's infrastructure allows for customized transfer restrictions and behaviors marking one of the main pillars of its architecture accounting for the changing regulations and requirements in the market of regulatory compliant asset trading.
Transfer Limitation Modules in Asset Tokenization
Transfer limitation modules are essential components in asset tokenization, providing critical features for regulatory compliant trading of real-world assets (RWA) on the blockchain. At Propchain, we prioritize flexibility and guaranteed regulatory compliance at all times.
Regulatory Compliance
Ensuring compliance with regulatory requirements is paramount in the tokenization of assets. Transfer limitation modules allow for the direct implementation of regulatory rules into token smart contracts. These modules enforce various legal frameworks governing the asset class being tokenized, such as:
Jurisdictional Compliance: Modules ensure that tokens are only transferred in compliance with relevant laws and regulations in specific jurisdictions.
Investor Accreditation: They verify the accreditation status of investors, restricting token access to eligible investors.
Transfer Restrictions: Modules impose restrictions on token transfers, including lock-up periods, maximum transfer amounts, or specific investor categories.
Flexibility
Flexibility is crucial to accommodate the diverse requirements of different asset classes and jurisdictions. Transfer limitation modules offer a high degree of flexibility, allowing for:
Tailored Solutions: Modules can be customized to meet the specific compliance needs of different asset types.
Dynamic Adjustments: They can adapt to changes in regulations or business requirements, ensuring ongoing compliance.
Interoperability: Modules seamlessly integrate with other systems or modules, facilitating complex compliance processes.
Enhanced Security
Enhancing the security of tokenized assets is paramount to maintain investor trust and ensure regulatory compliance. Transfer limitation modules contribute to this by:
Immutable Compliance: Rules enforced by modules are recorded immutably on the blockchain, reducing the risk of fraud or non-compliance.
Transparent Auditing: Compliance rules are transparent and auditable, providing stakeholders with visibility into regulated transfers.
Automated Enforcement: Compliance rules are automatically enforced, reducing the need for manual oversight and minimizing human error.
Transfer limitation modules are integral to achieving flexibility and guaranteed regulatory compliance in asset tokenization and trading on Propchain. By embedding compliance rules directly into token smart contracts, these modules ensure that token transfers adhere to legal requirements while offering the flexibility to adapt to changing regulations and business needs. With enhanced security and transparency, transfer limitation modules play a key role in realizing the full potential of tokenized real-world assets on the blockchain.
The SecurityToken contract offers a robust framework for tokenizing real-world assets as securities on the blockchain. With structured token management, module integration, and administrative controls, it provides a secure and compliant solution for investors and industry participants interested in tokenized assets.
Investment Factory
The SecurityTokenFactory contract is a critical component of Propchain's infrastructure, facilitating the creation and issuance of security tokens representing real-world assets (RWA) on the blockchain. This contract provides unique features and ensures regulatory compliant investment opportunities for investors.
The contract allows entities to register and issue security tokens. Each registered entity receives a unique token contract for their issued tokens. Key features include:
Entity Tracking: Entities are tracked based on their wallet addresses, ensuring uniqueness.
Entity Properties: The contract stores essential properties of each registered entity, including company address, ID, name, and associated token contract.
Token Issuance
Entities can issue new security tokens representing real-world assets. Features include:
Token Creation: New tokens can be created with specific properties such as name, maximum supply, jurisdiction, and price.
Entity Verification: Only registered entities or authorized administrators can issue new tokens.
On-Chain ID Integration: Integration with the OnChainIDRegistry allows verification of investors.
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