Similar to traditional securities, security tokens need to be approved by the regulator. Our partnering law firm Lindenpartners is a specialist in this field and will help you get started.
3+ years of experience with digital securities
Broad expertise across different financial instruments
Track record of successfully approved prospectuses
Since security tokens are a legally recognized financial instrument, it must be ensured that the participating investors are qualified for the investments. In addition, anti-money laundering measures must be put into place.
State-of-the-art practices in place
Regular AML / sanctions screening
Optional investor suitability checks
The step of actually tokenizing is centered all around the smart contract definition, deployment and minting of the token. It is crucial that the token setup reflects the characteristics of the prospectus.
Smart contract definition and easy deployment
Embed token functions: mint / burn / freeze
Continuous maintenance of token infrastructure
Ethereum supported token standards:
ERC20, ERC1400, ERC1404
The token distribution is done manually oftentimes, which makes this process error-prone and resource-intensive. Upvest allows for automated distribution to previously whitelisted (eligible) investors.
Batch whitelisting of qualified investors
Automated distribution of tokens
Monitoring of the token transfers
At Upvest, investment platforms can choose between two options for storage. Our non-custodial option, which gives sole access to the investors, and the custody option, which is developed working closely with the requirements of the German regulator.
Fully recoverable, white-label investor wallets
Access to funds via username / password
State-of-the-art security using HSMs
Our wallet solution comes with additional functionality to ensure a top-notch user experience for your investors as well as your implementing developers. New technology does not need to be cumbersome!
As regulation around crypto assets evolves, we ensure to always work with the most recent developments. Thus, we’re in the process of applying for the newly created custody license in Germany.
At Upvest, security is of the utmost importance. We aim to exceed banking-grade security standards and employ industry-leading encryption techniques to ensure that user wallets are always protected.