Blockchain technology has demonstrated its ability to greatly improve the ways in which we issue, trade and manage securities. Capital market participants are adapting to this digital evolution in order to save time, dramatically increase efficiency and stay relevant.
CustodyWare enables registered transfer agents to compliantly custody and manage digital securities. CustodyWare streamlines all major transfer agent functions including issuance, custody, transfer, query, reporting, affiliates and release while providing transfer agents with the ability to fulfill the same role for digital securities as they do for traditional securities.
Transfer agent DRS Platform
Extensive reporting & up-to-date shareholder listings
Issue, cancel and transfer securities
Digital medallion signature guarantee
Automated compliance for restricted securities, Rule 144, affiliate management
Paying agent tools for instantaneous dividends & distributions
Compliance with SEC Rule 17A-4(F)
Custody solutions post digital securities offering
Reduce duplication and ensure safe transparent custodianship of assets
Timestamped transaction records on Ethereum public blockchain
Integrate CustodyWare into your existing transfer agent technology or as a standalone portal
Integrate KYC/AML compliance checks on investors with blockchain-notarized proof that checks have been performed
Handle differing investor verification requirements for US and non-US investors
Expand blockchain services to support registered and exempt securities offerings of blockchain assets, digital securities offerings, ERC-20 issuances
Combine anonymized blockchain data with securely stored personal information to generate compliant, accurate shareholder reports
Protect investors and issuers with transparent and immutable storage of signed transactions on the Ethereum public Blockchain
Regulation A+ or S-1 Securities Offerings
Rule 506(c) of Regulation D
Good Control Location
Engaging a transfer agent is mandated by the SEC for issuers conducting S-1 registrations or securities offerings under Regulation A+, unless 12(g) exempt.
In order for a security issued under Regulation D to trade on a U.S. compliant secondary trading venue after a holding period, it must use a registered transfer agent.
The digital signature of the holder’s identity is maintained by CustodyWare on the Ethereum blockchain while the actual identity documentation is securely stored by the transfer agent in cold storage on an air-gapped hard drive pursuant to SEC Regulation S-P.
1. The investor nominates the transfer agent and signs a blockchain transaction to give the transfer agent control of their holdings.
2. The cryptographic assets remain the property of the investor, however appointing a transfer agent allows the investor to securely custody and manage their holdings.
3. On instruction from an investor, transfer agents can execute token transfers and releases.
4. Utilizing a transfer agent sets up an issuer’s digital securities for increased liquidity potential as digital securities can be moved from custody to “street-name” for secondary trading on a US SEC-regulated ATS.
5. Transfer agents can maintain post-offering custody and continue to maintain up-to-date shareholder listings, reports, distributions, proxy information, etc.
Let our team demonstrate how we can in seamlessly integrate custody blockchain services into your existing transfer agent technology or offering.
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