Tokenization with FundNav®
Tokenization is changing the funds industry and the access to alternative investments, by transforming fund shares into digital tokens. These tokens, representing ownership in assets like those held by mutual funds, venture capital funds, or private equity firms, are issued and traded on blockchain technology.
Leveraging the robust infrastructure of Funds365.io, our native tokenization service offers unparalleled advantages for investment funds, focusing on security, traceability, and cost-effectiveness.
Benefits of tokenization
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Breaking down barriers
Tokenization dismantles traditional entry barriers, such as high minimum investment requirements or geographical restrictions. This democratizes access to previously exclusive investment opportunities.
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Unlocking Liquidity
For funds dealing with illiquid assets like real estate or private equity, tokenization creates a secondary market where investors can easily buy and sell their shares, significantly enhancing liquidity.
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Fractional Ownership:
Tokenization allows investors to purchase fractional shares of a fund, making it possible to invest in high-growth opportunities with smaller capital.
Ideal Fund Types for Tokenization
Real Estate Funds
Overcomes illiquidity and high entry costs, enabling broader participation in real estate investments.
Private Equity & Venture Capital Funds
Democratizes access to high-growth sectors by allowing individuals to invest in previously exclusive opportunities.
Hedge Funds
Provides greater accessibility to complex investment strategies with improved liquidity and transparency.
Infrastructure Funds
Enables broader public participation in funding essential infrastructure projects.
Commodities Funds
Offers investors easier and more flexible trading options for commodities like gold, silver, and oil.
Debt Funds
Improves liquidity and accessibility for investors seeking exposure to diverse debt securities.
Tokenisation may also be applied to Notes, Actively Managed Certificates, Bonds, and any kind of debt securities.
The issuer of the securities delivers a token in the wallet of the investor; such token being a representation of the share/unit/note.
- Shares of companies
- Units of investment fund
- Limited Partners Interest
- Notes
- Bonds
- Any kind of securities (stock option, rights in partnership, association, DAO, etc).
Multi Currency
Unrivaled Security with Ethereum Blockchain
Enhanced Traceability and Transparency
Superior Cost-Effectiveness
Whitelisting
Funds365 tokenisation system enables the digitalisation of securities using the ERC-3643 standard the global benchmark for compliant tokenisation.
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Each token issued represents the ownership right or claim over an underlying security such as equity, stock, debt, LP interest, unit, bond, Etfs, (crypto) notes, asset backed securities, actively managed certificate or any kind investment fund shares.
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The system has been independently audited, ensuring robust security, transparency, and regulatory compliance.
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ERC-3643 embeds compliance rules directly into the token itself, enforcing KYC, AML, and transfer restrictions at the protocol level.
Only verified and authorised investors (“white listed”) can hold or be transferred tokens, ensuring full alignment with global securities regulations.
The permissioned blockchain architecture guarantees traceability and auditability while maintaining confidentiality. -
Smart contracts automate issuance, distribution, settlement and redemption, drastically reducing settlement time and operational costs.
Primary issuance and secondary trading are both supported, unlocking liquidity for traditionally illiquid assets such a LP Interest or long term securities. -
Fractionalisation allows broader investor participation and easier portfolio diversification.
The platform integrates seamlessly with custodians, registrars, accountant, depositories, and fund administrators.
It is compatible with the standards of MiCA, FATF, Mifid II and other major digital asset frameworks worldwide. -
Comprehensive audit logs,OnChainID and on-chain governance features simplify regulatory oversight.
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APIs allow connection to existing fund management and banking systems for full interoperability.
Data integrity and transaction privacy are maintained using advanced cryptographic standards.
Built-in reporting and compliance modules streamline investor and regulator communications. -
Token lifecycle events such as redemptions or distributions occur entirely on-chain.
Real-time reconciliation ensures continuous proof of ownership and transparency. -
The system supports multi-asset and multi-jurisdictional deployments.
In summary, Funds365 tokenisation delivers a secure, compliant, and audited ERC-3643 infrastructure bridging traditional finance and digital markets. It represents the global standard for compliant tokenisation of securities.
By offering this service natively on the Funds365.io platform, we provide a seamless, integrated experience that leverages your existing infrastructure and expertise, making the transition to tokenized funds efficient and highly beneficial.
A fully digital reporting platform for managers to share information with investors
FundNav® is an investor's relation and communication hub which enables Fund Managers and Issuers to provide investors with the latest NAV, updated portfolios, information related to their investment, peer to peer market to increase the liquidity of their assets. Onboard and KYC investors with a 100% dematerialised process.