Asset Tokenization

Plume is the first blockchain to offer asset tokenization as a feature that's available on our chain. In stark contrast to tokenization platforms that exist today, we believe that asset issuers should have access to a free product that lets them tokenize their assets in a globally compliant way.

Currently under development, it will be open-source, MIT licensed, and will employ the app store model to let an institutional issuer install modular compliance apps of their choosing. For example, any issuer should be able to utilize our know-your-counterparty partners to enforce those requirements at the smart contract level.

While currently in active development and quality assurance, issuers can already signup for the waitlist.

What is Asset Tokenization?

Asset tokenization is the process of converting legal and economic claims against the underlying asset into composable smart contracts. In every jurisdiction in the world, asset tokenization is already being done at some scale. In the U.S., tokenization falls under the Uniform Commercial Code articles 9 through 12 - these speak to any asset issuer's ability to record stakeholders using any medium, from paper, to databases, and even blockchains.

What Regulatory Restrictions Exist?

In the U.S., the SEC makes a clear distinction between tokenization and fundraising. While tokenization converts economic and legal rights into useful tokens, fundraising lets issuers of tokenized securities raise money.

Offerings of securities that are made available to sophisticated (e.g. accredited, qualified, professional) investors are typically exempt from SEC registration and require that the issuer files Form D with the SEC after fundraising is done.

Every other offering falls under more regulatory requirements, and any issuer that raises from retail (e.g. public, non-accredited) must comply with disclosing significantly more information using various forms provided by the SEC.

On Plume, asset issuers that need help from FINRA-registered brokers, exchanges, and law firms will be able to utilize their services form one app. We provide this table strictly for reference and education.

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