Setup of a tokenization platform for fund units

Initial situation

  • Support of the client fundsonchain in cooperation with our strategic partner adesso in developing a DLT-based platform for the settlement of electronic fund units and crypto fund units
  • The goal is to find a suitable DLT framework for the implementation of the use case, taking into account architectural options (permissioned vs. public blockchain)
  • Build an architecture for on-chain and off-chain data, taking into account compliance and regulatory requirements
  • Functional design of a wallet infrastructure

Approach

  • Comprehensive analysis of DLT frameworks taking into account performance and scalability (e.g., data throughput, number of nodes), governance structure (consensus mechanisms), IT security, data protection, and cost
  • Selection of transaction-relevant data sets to differentiate on-chain vs. off-chain data
  • Consideration of relevant factors from the Electronic Securities Act (eWpG) the Regulation on Crypto Fund Units (KryptoFAV) and the Regulation on Requirements for Electronic Securities Registries (eWpRV)
  • Consideration of relevant factors from the Compliant Architecture for Security Tokens (CAST) framework (e.g., business continuity and data protection)

Results

  • Selection of Hyperledger Fabric and Hyperledger Besu as DLT frameworks to ensure both public and permissioned blockchain infrastructure
  • Successful implementation of the DLT-based registry, ensuring full integration and utilization of the identified transaction-relevant data
  • Successful implementation of eWpG, KryptoFAV and eWpRV requirements
  • Successful implementation of a business continuity plan incl. redundancy mechanisms, to ensure seamless transition of technical infrastructure in the event of severe technical issues or external disruptions