What actually happens, end to end
Tokenization is not a single event. It is a lifecycle: qualifying an investor, issuing units, servicing them for years, and eventually letting them change hands. This is how a Participant scheme is designed to run at each stage — and what the technology is doing while you see a dashboard.
KYC checks and document collection
An identity-verification workflow confirms that the person completing the check online is the person on the submitted documents. Passport, proof of address, and source-of-funds evidence are collected in one place rather than over email.
Qualification of the investor
A compliance officer reviews and approves — or declines — each applicant against the scheme's eligibility rules. Only qualified, approved investors can subscribe to or later receive units, at any point in the scheme's life.
Digital subscription and signature
Approved investors receive the term sheet and subscription documents and sign them electronically. There is no printing, scanning, or courier step.
Payment and reconciliation
Subscription amounts are paid in USD by wire into the scheme's account at an IFSC Banking Unit. A cost calculator shows the full subscription amount including fees and the applicable exchange rate before commitment. The paying agent reconciles each payment against its reference before units are allocated.
What happens underneath
Where this stands
No relaxation is sought — and none is available — on KYC, AML, or sanctions screening. Under the IFSCA FinTech Entity framework these are expressly non-relaxable, and Participant does not intend to test them.
Token deployment
A dedicated ERC-3643 token contract is deployed for the scheme. At deployment the token's details, the controlling wallet, the eligibility rules expressed as required claims, the compliance rules — such as a cap on the number of investors or a holding limit — and the identity register are all configured. Rules can be reused across later schemes.
Allocation to investors
Once subscriptions are confirmed, units are minted and allocated to each investor's whitelisted wallet, in bulk rather than one at a time. Any investor without a digital identity has one created automatically as part of the allocation.
Register and dashboard update together
The investor's dashboard shows their holding immediately, and the register of unit holders updates in the same moment. There is no overnight batch and no separate reconciliation between the registrar's book and the investor's statement — they are the same record.
What happens underneath
Where this stands
Recognition of an on-chain register as the authoritative register of an AIF's units is precisely the kind of question the IFSCA FinTech Regulatory Sandbox exists to test. It has been tested once before in GIFT City on this same standard. Participant holds no authorisation today, and no token has been deployed or minted.
Register management and reporting
The unit register is live: holders, holdings, identities, wallets, and every transaction. A position report can be exported as at any chosen date — the record an auditor, administrator, or regulator asks for, produced without a reconciliation exercise.
Distributions and corporate actions
Rental distributions, NAV publication, and other corporate actions are executed against the register as it stands at the record date, with the result visible to every holder at once.
Unit-level controls
Units can be frozen for an individual holder pending a regulatory check, transfers can be paused scheme-wide, and a transfer can be executed on a holder's behalf where the fund documents or a court require it. Every such action is recorded permanently and reflected in the register in real time.
Recovery of lost access
If an investor loses access to their wallet, their units are not lost. On a verified recovery request the units are re-issued to a new whitelisted wallet bound to the same verified identity — the holding belongs to the identity, not to the device.
Subscriptions, redemptions, notices
Further subscriptions and any redemptions are managed through the same order flow, and scheme communications — reports, notices, statements — reach holders through the platform rather than scattered email.
What happens underneath
Where this stands
These controls exist because a regulated fund needs them: a court order, a sanctions match, a deceased holder, or a lost device are ordinary events in fund administration. Their design and use would be governed by the scheme documents and the compliance framework.
Units are made transferable
After the lock-in set in the scheme documents, units are enabled for transfer. Before that point the token contract simply will not move them.
Finding a counterparty
A bulletin board lets holders post an interest to buy or sell and find a counterparty. It is a noticeboard, not an exchange: there is no order book, no market maker, and no continuous market.
Compliance-gated settlement
A transfer is attempted only between two whitelisted, identity-verified investors. The token leg settles on-chain and the cash leg settles through the banking partner, with the register updating as the transfer completes.
Reference pricing
The scheme's periodically published NAV, produced by an independent valuer, travels with the asset as its reference price. Transfers reference NAV rather than a speculative market quote.
Connectivity, if and when permitted
Because compliance travels inside the token, units could later be made available through an authorised venue or an approved custodian without rewriting the instrument — subject to authorisation, agreements, and the rules that apply at the time.
What happens underneath
Where this stands
A peer-to-peer facility of this kind is a proposed sandbox feature, not a delivered one, and it is not a stock exchange. Transferability is not the same as liquidity: a holder can only sell if another eligible investor wants to buy.
The compliance gate, made visible
In a traditional fund, eligibility is a rule in a document that someone must remember to apply. Here it is enforced by the instrument itself: a transfer to an ineligible party does not get rejected later — it cannot execute at all. Change the conditions below and watch the same transfer succeed or fail.
Illustrative simulation of the rule set a scheme would configure. It runs entirely in your browser, touches no live contract, and no transfer of any kind is possible on this website.
Roles, and the limits on each
Control is not one master key. Each capability is delegated to a named role, and every use of it is recorded.
Roles reflect the intended operating model. Service providers are appointed only as engagements are confirmed; naming any provider here would imply a relationship that does not yet exist.
Four layers, each doing one job
Who you are
A verified digital identity carrying signed claims — KYC passed, jurisdiction, eligibility — bound to your wallet.
What you hold
An ERC-3643 permissioned token designed to represent a unit of the scheme, with the rules encoded inside it.
How it moves
An EVM network for the token leg; an IFSC Banking Unit for the USD leg. Neither substitutes for the other.
How it is run
Register, valuation, distributions, reporting and controls — the work that continues for the life of the scheme.