Skip to content
English
Contact
Home
  • There are no suggestions because the search field is empty.

Assigning Tokens to an Issuer-Custodied Owner

This article explains how an issuer can assign tokens in their Asset to an investor that has not registered for an investor account in their Marketplace. This class of investor is referred to as an Issuer-Custodied Owner.

In This Article

  • What is an Issuer-Custodied Owner?
  • Assigning Tokens to an Issuer-Custodied Owner
  • Assigning Tokens to an Issuer-Custodied Owner - Video Demo

What is an Issuer-Custodied Owner?

An Issuer-Custodied Owner is an investor in your Asset who has not yet registered for their own investor account in your Marketplace. 

Most investors will create their investor account in your Marketplace, complete KYC and accreditation (if required), then invest in your Asset by making a primary purchase in an Offering.

However, there are cases where you may wish to distribute tokens to investors who have not gone through this process, while still ensuring that their ownership stake is reflected in the Owners Managements (cap table) tool for your Asset. This is where the Issuer-Custodied Owner feature works best. 

Assigning Tokens to an Issuer-Custodied Owner

  1. Login to your issuer account and enter your Marketplace.
  2. From the Marketplace dashboard, click Companies and enter your Company.
  3. From your Company dashboard, click  Owners managements   to launch the cap table management tool for your Asset.
    1. If you have more than one Asset listed under the same company, you will need to use the drop-down menu on the Owners managements page to select the correct asset. 
  4. From the Owners managements page, click Add Owner on the right side of the page, and follow the prompts:
    1. Select the owner type (individual or institutional)
    2. Enter the name of the investor 
    3. Enter the number of tokens you wish to distribute to this investor
    4. In the total raise column, you can choose to specify a total amount of money that was raised/paid in exchange for this token distribution. Note that you should enter the cumulative value raised/paid for the entire quantity of tokens distributed, not a per-unit price. 
  5. Click the Add Owner to confirm.

Once complete, you will see the investor listed in your cap table as a new Issuer-Custodied Owner. You will see the overall ownership of all investors adjust to reflect the distribution of new tokens. 

Note: If an Issuer-Custodied Owner wishes to take possession of their tokens, they will first need to create an investor account in your Marketplace. Then, the issuer must amend the cap table to remove their issuer-custodied tokens and use a Token Distribution to distribute an equivalent number of tokens to their self-custody wallet. 

Assigning Tokens to an Issuer-Custodied Owner - Demo Video

This video provides a walkthrough of the process to assign tokens to a new Issuer-Custodied Owner: