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Tokenization Lifecycle ​

The Tokenization Lifecycle: A Mechanical Workflow ​

The process of tokenizing an asset follows a structured technical workflow:

  1. Asset Sourcing and Due Diligence: The first step is off-chain. The asset to be tokenized (e.g., bonds, equity, art) is legally vetted and placed within a legal structure, often a Special Purpose Vehicle (SPV), that establishes clear ownership.
  2. Configuration and Smart Contract Deployment: The Issuer uses the Torque platform to configure the token's parameters. This information is then used to deploy a unique ERC-3643 compliant smart contract onto the Ethereum blockchain.
  3. Token Minting and Issuance: Once the smart contract is live, the minting process is triggered. The total supply of tokens, representing total ownership of the underlying asset, is created and deposited into the offer's digital wallet.
  4. Distribution and Primary Subscription: The Issuer makes tokens available to initial Investors through an approved fund subscription. The applicable services handle subscription, payment, acceptance, and delivery to eligible wallets.
  5. Servicing and Controlled Transfers: Post-issuance, the smart contract continues to govern the token's lifecycle. The platform supports lifecycle management, including dividend distributions, voting where the governing rights provide for it, and compliance reporting. Any transfer remains subject to the applicable contract, eligibility rules, and fund terms.