Fundshing utilizes industry-leading token standards to ensure the security, compliance, and interoperability of tokenized private equity investments. Due to the regulated nature of private equity, we primarily focus on security token standards:
ERC-1400: This standard is specifically designed for security tokens, offering features like granular control over token transfers, forced transfers, and document attachments (e.g., subscription agreements, operating agreements).
ERC-3643 (T-REX): Another robust framework for security tokens, emphasizing on-chain compliance and identity management, facilitating adherence to KYC/AML regulations and restricted transfers.
Strategic Consulting – We work with fund managers to develop a customized tokenization strategy, considering fund structure, investor base, and regulatory implications.
Fund Due Diligence and Valuation – We conduct rigorous due diligence on the underlying assets and fund structure to ensure accurate representation and investor protection.
Token Design and Issuance – We manage the technical creation of secure, compliant, and interoperable digital tokens representing the private equity interests.
Legal and Regulatory Compliance – We ensure adherence to all applicable securities regulations, including private placement rules and investor accreditation requirements.
Investor Onboarding and KYC/AML – We provide streamlined processes for investor onboarding, verification, and compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Secondary Market Access (where applicable) – We are able to support with different solutions for secondary markets.
Enhancing Liquidity, Transparency, and Accessibility for Private Equity Investors
Traditional private equity investments are highly illiquid, often requiring investors to commit capital for 5–10 years before an exit opportunity arises. Tokenization allows:
Fundshing supports the tokenization of various private equity structures, including:
Each structure requires customized tokenomics and compliance mechanisms, which Fundshing helps design and implement.
Private equity tokens are classified as securities, meaning they must comply with jurisdictional regulations such as:
SEC Regulations (US) – Reg D, Reg S, or Reg A+ offerings for investor protection.
European Securities Laws (MiFID II, MiCA, ESMA Guidelines) – Ensuring transparency and investor compliance.
KYC/AML & Accredited Investor Verification – Enforcing identity verification and investor qualification.
Smart Contract-Based Compliance – Automating investor restrictions and transfer limitations directly on-chain.
Fundshing works closely with legal partners and regulators to structure tokenized funds in full compliance with securities laws across multiple jurisdictions.
Fundshing streamlines the tokenization of private equity investments through a four-step process:
Fund Structuring & Legal Compliance – Defining the legal framework and investor rights for the security tokens.
Token Issuance & Smart Contract Deployment – Creating digital shares that reflect fund ownership.
Investor Onboarding & Distribution – Implementing KYC/AML processes and issuing tokens to investors.
Secondary Market Listing & Liquidity Management – Connecting tokens to compliant exchanges for trading opportunities.
