After investor have purchased digital assets on the primary market from the issuer, they have the possibility to transfer those assets to other investor for example as part of a secondary market trade. These transfers can either be initiated via the platform itself or outside the platform on a decentralized or centralized exchange.
The Cashlink Studio allows you to track those transfers as they happen on-chain so that you always stay up-to-date on who owns which parts of the digital asset. You can view the transfer status on the investments details page.
If units that were part of an investment are transferred to another investor a new investment is created for that investment and the data is shown in the Cashlink Studio. You can view which information has been created by viewing the investment details page.
The on-chain data itself doesn't hold information on which investment should be used as the source investment of a transfer transaction. We therefore use the First-In-First-Out logic to determine the source investment. That means that investments made first in time are used first. If the units of the first investment are not enough, we start deducting units from the next investment made after the first one.
Per default not everyone is able to receive a digital asset. They must be whitelisted to so. The whitelisting process involves a KYC/AML check of the investor.
Restricting the pool of investors that are allowed to hold digital securities has many advantages:
- It enables compliance by making sure that only such investors hold digital securities that are not forbidden by law to do so. For example, you may want to whitelist only investors residing within the European Union or only professional investors.
- Whitelisting enables you to collect a reference bank account that will be used to credit income payments to the investor.
- You've got direct access to a communication channel with the investor to meet obligations coming from information rights of the investors.
Whitelisting is enforced on-ledger by the token protocol that is used. Each transaction that is intended to be executed is checked against the whitelist and approved or rejected.
Whitelisting is enforced automatically by adding investors to all the products' whitelists issued on the platform, if the investor's wallet is set up for the Ethereum or Polygon/Matic network. Whitelisting for Stellar is done after the Investor has created a trustline for the asset.
A wallet can be created by the investor theirself via Cashlink Signing in the frontend or programmatically via the Cashlink API (Stellar wallets are currently only supported by Cashlink Signing).