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Alternative Investments

Auxite

Auxite provides institutional access to fully allocated gold, silver, platinum and palladium through independently custodied storage. Fundshing supports its proposed tokenized equity offering through a Delaware issuer, designed for verified accredited investors under a Rule 506(c) private-placement framework, subject to final legal and regulatory approvals.

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Business need

What the team needs to solve

Auxite sought a structured route to reach and onboard eligible U.S. accredited investors while maintaining appropriate controls around investor eligibility, subscription processing, securities records and the relationship between the Delaware issuer and the underlying Hong Kong asset. The project required experienced legal, regulated and operational providers working through one coordinated implementation process.

Solution

How the workflow is structured

Fundshing proposed the use of its tokenization engine to support the digital-security workflow for Auxite’s proposed Delaware issuer structure. Fundshing introduced and coordinated specialist providers for the project, including U.S. securities legal counsel, a U.S. broker-dealer, transfer-agent support, custody, escrow, KYC/AML and accredited-investor verification providers. Legal counsel is responsible for the legal structure, offering documents and applicable securities-law analysis. Regulated providers remain responsible for their respective licensed or regulated activities. Fundshing provides technology infrastructure and workflow coordination, including configurable digital-security records, permission controls and operational evidence

Solution benefits

What the operating model enables

  • Structured implementation path for a proposed tokenized equity offering
  • Access to specialist legal, broker-dealer and regulated-service providers
  • Accredited-investor eligibility and onboarding workflow
  • Configurable investor permissions and transfer-control logic
  • Centralized operational records and evidence trails
  • Clear allocation of responsibilities among issuer, counsel, regulated providers and technology provider
  • Technology workflow designed to support approved legal and compliance requirements

Implementation guide

A practical sequence for this use case.

  1. 01Confirm the commercial objectives, proposed investor audience and tokenization requirements with Auxite
  2. 02Introduce the issuer to qualified U.S. securities counsel to determine the issuer structure, investor rights and relationship to the underlying Hong Kong asset
  3. 03Support coordination between Auxite and appointed broker-dealer, legal, transfer-agent, custody, escrow, KYC/AML and verification providers
  4. 04Legal counsel and the issuer prepare, review and approve the offering documents, disclosures and subscription materials
  5. 05The appointed providers establish accredited-investor verification, KYC/AML, custody, escrow and securities-administration processes
  6. 06Configure the Fundshing tokenization engine in accordance with the legal structure and approved operational requirements
  7. 07Activate the technology workflow only after the issuer and appointed providers confirm that the required documentation, approvals and controls are in place
  8. 08Support the technology workflow after closing, while the issuer and appointed specialist providers remain responsible for investor administration, transfers, custody, compliance and other regulated activities

Apply the model

Bring this workflow into your asset program.

Discuss the asset, evidence requirements, operating controls, and launch path with the Fundshing team.

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