Bond tokenization is the process of converting traditional bonds or fund interests into digital tokens on a blockchain. This enables fractional ownership, increased liquidity, reduced settlement times, and enhanced transparency while maintaining regulatory compliance.For fund managers, tokenization creates new distribution channels and operational efficiencies while potentially broadening the investor base.
Cobo provides an integrated infrastructure stack to help fund managers issue and manage tokenized representations of fund interests. Our comprehensive solution bridges traditional finance with blockchain technology, enabling secure, compliant, and efficient digital asset management.Our solution includes:
MPC wallet infrastructure for both investors and fund managers, ensuring institutional-grade security
Tokenization app for smart contract deployment and token access and administrative controls
Compliance-enforced token standards (CoboERC20, based on the ERC-20 standard) that maintain regulatory alignment
Key benefits for fund managers:
Enhanced security through MPC technology and compliance-enforced standards
Streamlined lifecycle management of tokens (issuance, minting, burning, etc.) through a single interface, ensuring reliable alignment with off-chain legal ownership
Reduced operational overhead through automated compliance controls enforced at the smart-contract level, such as token access controls
Improved investor experience with digital access and management
Once the off-chain subscription is finalized, you will use the Tokenization app to perform the on-chain issuance and manage the token’s lifecycle:
Mint and distribute tokens: You have the flexibility to mint tokens immediately or on-demand as investors subscribe. This involves minting the exact number of tokens corresponding to the investor’s subscription and distributing them directly to their verified wallet address. Each token serves as a digital representation of the investor’s beneficial interest in the fund.
Manage token lifecycle: Manage all aspects of your token post-launch, including burning tokens and pausing the contract.
Cobo’s infrastructure and Tokenization app provide fund managers with a comprehensive solution for issuing and managing tokenized fund interests.By following these best practices, you can leverage blockchain technology to enhance operational efficiency, improve investor experience, and maintain regulatory compliance throughout the fund lifecycle.