Whitelisting investors
Whitelisting is used to restrict the pool of investors that are allowed to hold digital securities. Only investors that are on the whitelist are, therefore, able to trade the digital securities between each other.

Why is whitelisting necessary?

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).
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Why is whitelisting necessary?
How does whitelisting work with Cashlink?