Compliance - by - Design

Ownership Shares and Specific Rights as Stand-Alone Assets

OAE enables the tokenization of any rights, including partial or fractional ownerships, as stand-alone assets. This functionality is applicable to various assets such as real estate, property shares, or even a fraction of existing tokens, allowing for the creation of fractional ownership where partial rights can be managed independently.

Practical Example: Consider owning 40% of an apartment building or a 25% interest in a patent. Through OAE, these partial ownerships can be tokenized into individual assets. These tokens represent your share and can be traded or leveraged independently from the main asset. This capability not only simplifies the management of fractional ownerships but also enhances their liquidity and marketability, facilitating easier access to investments and the potential to diversify investment portfolios significantly.

Legalization of Tokens

OAE, along with Asset Chain and IAC triangle, facilitates the re-issuance of tokens within a legally compliant framework such as the DLT Foundations. This capability allows tokens to carry enhanced functionalities and rights, including equity shares or bonds.

Practical Example: An enterprise can utilize OAE to transform its traditional shares into digital tokens. These tokens are not merely digital assets but are structured to include legal rights such as dividends, voting powers, and a share in the company’s revenues. By re-issuing their equity or debt instruments as tokens on the OAE platform, companies can ensure that all token transactions comply with regulatory standards while also enhancing the tokens’ utility. This makes the tokens more attractive to investors, as they now carry additional rights and benefits that are typically associated with conventional financial instruments.