The first configuration supports full crypto payment workflows and internal settlement in a crypto balance. To avoid currency exchange-rate risk, DigiShares recommends to use trusted stablecoins for payment and settlement, such as USDC and EUROC (when available). This configuration assumes that issuers and users have their own wallets (such as Metamask) to facilitate transactions such as whitelisting of wallets, purchase of security tokens, and trading with security tokens. Trading works with a peer-to-peer smart contract-based atomic swap with no counterparty risk.
The second configuration is for use cases where the majority of investors are not familiar with crypto or prefer not to use crypto. For this use case, we support a fully fiat-based configuration where investors can pay in fiat (USD, EUR, etc.) from their normal bank accounts via wire, ACH, and credit card. Security tokens will be kept internally in the platform so there is no requirement for users to have a wallet.
The third configuration is for more regulated or institutional use cases where the issuer wants to provide investors with an internal wallet with crypto funds available to invest at any time. This configuration allows investors to top up their internal balance with stablecoins (USDC, EUROC, etc.) and to use these funds to invest in the listed projects. The system will maintain investors’ wallet balance internally. Since most issuers are not licensed to safekeep investor funds, this configuration typically requires custody integration.
DigiShares is blockchain agnostic and supports both Ethereum, Polygon, BSC, Ravencoin, and soon Polymesh. Other chains will be supported later in 2023. We provide a user-friendly token studio that supports minting security tokens with common parameters for all these chains. For EVM-compatible chains we provide our own heavily tested and audited implementation of ERC-1404.
Claus Skaaning, CEO, DigiShares, says, “As the crypto industry matures, we see the crypto configuration as the most interesting. Longer term we expect the trend go towards self-custody, either in Metamask, or in similar wallets associated with exchanges, such as Coinbase or Binance Wallets, or more institutional wallets, such as Fireblocks Wallet. In any case, we are prepared to meet most requirements with the above three configurations”.
DigiShares is one of the leading providers of white-label tokenization platforms for real world assets, combining smart contract creation, investor onboarding, cap table management, and peer-to-peer trading in an end-to-end solution. With DigiShares, real asset owners and fund managers can automate processes, more easily fractionalize ownership and democratize access, and increase liquidity through the built-in bulletin board or external exchanges.