Tokenized fund units with on-chain eligibility
How we structure a fund tokenization platform where only eligible investors can hold or receive units.
This is a reference architecture describing how Shivacha approaches this class of system. It does not describe a specific client engagement and contains no client names or results.
Challenge
A fund manager wants to distribute fund units digitally with faster subscriptions and transfers, while ensuring units never reach ineligible investors and remain aligned with the official register.
Context
Applicable to asset managers, fund administrators and platforms tokenizing money market, credit or alternative funds, working with their legal advisors.
Approach
How we approach it
- 1
Rules from counsel
Investor eligibility and transfer rules defined by the fund's legal advisors become technical requirements.
- 2
Permissioned token
ERC-3643-style token with an on-chain identity registry and compliance modules.
- 3
Register alignment
Token state reconciled with the transfer agent's register.
- 4
Stablecoin and fiat dealing
Subscriptions and redemptions settled via partners.
Implementation
Key implementation elements
KYC integration
Verified investors receive eligibility claims.
NAV oracle
Published NAV data drives subscription and redemption pricing.
Recovery procedures
Issuer-controlled recovery for lost wallets.
Audit-ready contracts
Specifications and tests prepared for independent audit.
Outcome
The intended result is a digital distribution channel where compliance rules are enforced automatically on every transfer, and on-chain records stay aligned with the fund's legal register.
Lessons
- The legal structure determines the technical design, not the other way round.
- Recovery and forced-transfer procedures need governance as much as code.
- Reconciliation with off-chain registers is an ongoing process, not a one-off.
Services
Services involved
Fund Tokenization
Tokenize fund units — money market, credit, equity and alternative funds — with on-chain registries and settlement.
Learn moreRWA Tokenization
Real-world asset tokenization platforms covering the full lifecycle — issuance, onboarding, transfers, custody and settlement.
Learn moreSecurity Token Development
Security token smart contracts with identity-based transfer restrictions, issuer controls and standards like ERC-3643.
Learn moreOn-Chain Identity
On-chain identity registries and claims for permissioned tokens, access control and compliant DeFi.
Learn moreMore work
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Learn moreNext step
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