Pioneering Tokenization: RainFin's Breakthrough in Real-World Asset Tokens enables all partner CASPs and FSPs to Tokenise and distribute RWA's

By Sean Emery and Tobie Van Der Spuy RainFin (Pty) Ltd Block Markets Africa #tokenisation

We are excited to introduce our unique approach to Tokenising real-world assets, which uses En Commandite Limited Partnerships.

We're not just innovating; we're revolutionising the field with a globally accessible Token that operates within a Globally accepted framework. This groundbreaking approach positions us as pioneers in South Africa and Globally and sets the stage for a new era in asset Tokenisation.

We structure our Tokens as Limited Partner Certificates (LPCs) within an En Commandite Limited Partnership (ECP).

Each Token represents a unique partnership interest in a single asset ECP, ensuring that every Limited Partner (LP) is clearly defined and their rights protected under existing law. This legal structure provides Token enforceable legal rights, ensuring token holders enjoy all the traditional protections of a partnership interest.

Blockchain technology enhances digital utility, allowing for the transparent and secure identification of partners through their KYC-verified wallet addresses.

Our Tokens are fungible, as they do not require unique certificate numbers and can be easily transferred between verified partners in any fraction. Thus, we enable advanced functionalities such as placing tokens in escrow or using them in collateralisation smart contracts approved by the General Partner. Our framework allows for the seamless integration of traditional financial protections with the efficiency and flexibility of digital assets.

Understanding the Dual Nature of Our Tokens

At RainFin, we've developed a limited partner certificate token that serves a dual purpose. It's both a digital asset and a legally recognised right for the holder. The Token is not just a digital token; it's a secure investment and financial product. By structuring our Token as a regulated membership certificate, we ensure holders enjoy all the legal protections of traditional investments, giving you confidence in your investment.

Our Token's digital nature brings a host of benefits. Unlike traditional certificates, our tokens are not burdened with explicit certificate numbers. Instead, we identify partnership members by their KYC-verified wallet addresses. The number of tokens in your wallet represents your claim in the partnership, making all tokens fungible. (Fungible assets are identical, interchangeable, and hold equal value. In cryptocurrency, this means one unit can be exchanged for another without any difference in value. For example, 1 ETH is equivalent to another 1 ETH. In contrast, non-fungible tokens (NFTs) are unique and cannot be exchanged on a one-to-one basis due to their distinct value)

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This fungibility allows for easy transfer between verified partners, use in smart contracts for collateralisation, and even participation in advanced functionalities like guarantees and lending services, enhancing our tokens' utility and potential returns.

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Your Legal and Economic Rights as a Token Holder

When you acquire a token from our En Commandite partnership, you get a Limited Partner Certificate (LPC). Let me break down what this means for you:

1.?? Digital Tokens Only: Our tokens are entirely digital. There are no physical certificates. These ERC 1400-compliant tokens are stored on the blockchain, providing secure and immutable proof of ownership. This digital format eliminates the risk of losing paper certificates and makes managing your investment more convenient and efficient.

2.?? Representation and Security: The blockchain technology behind our tokens ensures transparency and tamper-proof records of your investment. Each Token encapsulates your rights and obligations as a Limited Partner, making it easy to transfer or manage your interest through a digital wallet.

3.?? Managing your tokens is a breeze with our user-friendly RainFin platform and digital wallet. This secure and convenient setup allows you to track your investment, view returns, and perform transactions seamlessly, no matter where you are.

4.?? Legal and Economic Standing: Our tokens represent a Limited Partner interest in an en commandite partnership. They are not securities or units in a collective investment scheme. The partnership structure limits your liability to your capital investment, providing financial security.

Connecting to Real-World Assets

1.?? Direct Economic Interest: By holding our tokens, you have a direct, legally enforceable economic interest in the underlying assets. As a consequence, you're entitled to a share of the returns generated by these assets. As the value of these assets increases, so does the value of your tokens.

2.?? Proportionate Returns: Returns are distributed based on the number of tokens you hold relative to the total issued. They are ensuring a fair and equitable share of the income and gains. Along with returns, you share any obligations related to the assets, all clearly defined in the partnership agreement.

Tax Benefits

1.?? Tax Neutrality: Our En Commandite Partnership (ECP) is designed to avoid double taxation. All income, gains, losses, deductions, and credits pass through to you, the partner. This means you only pay taxes on your share of the partnership's income on your tax return.

2.?? Individual Tax Rates: You benefit from your tax situation. For instance, if you're in a lower tax bracket, your partnership income is taxed at that lower rate. Plus, you can apply your share of deductions and credits to reduce your overall tax liability.

Our Vision and Why We're Doing This

At RainFin, our vision goes beyond simply tokenising assets. We believe in creating a globally connected, digitally empowered financial ecosystem that benefits everyone involved. Our mission is to make asset tokenisation accessible and efficient for all entities, leveraging our framework to create tokens that can be utilised globally. This is a technological advancement and a significant international step for South Africa.

We've developed a comprehensive regulatory framework and a cutting-edge blockchain technology stack to achieve this. Our Asset Tokenisation as a Service model provides end-to-end financial services infrastructure, from wallets to token management. This means our partners can build global Web3 financial service providers from the ground up, one tokenised asset at a time.

Practical Applications for Our Partners

With our infrastructure, partners can access a complete suite of financial services. This includes everything from secure wallets to advanced token management systems, enabling seamless integration and operation within the Web3 financial ecosystem. Whether you're a startup looking to tokenise assets or an established firm aiming to expand your digital presence, RainFin provides the tools and regulatory support to make it happen.

Launching Our Tokens: A Proof of Concept

To demonstrate the practical benefits and robustness of our tokenisation model, we have launched the following four tokens as a proof of concept:

1.?? ZAR XCAP Token (ZARx): This Token represents a tokenised limited partnership agreement in an En Commandite Limited Partnership (ECP). It aims to achieve returns of approximately 40% of the ZAR-linked repo rate, less than 1%. The underlying asset is an Tier 1 Bank Trust Liquidity Plus account, with an effective targeted return of approximately 2.4%. RainFin acts as the General Partner, and Caep Asset Managers oversee the asset management, backed by bank deposit-audited reserves.

2.?? ZAR Savings Token (ZAR-ST): This Token offers returns linked to the South African repo rate minus 0.25%. The underlying asset is a TIer 1 High Interest Bearing On Demand account, providing an effective targeted return of approximately 8%. RainFin is the General Partner, and asset management is by Caep Asset Managers. Bank deposit-audited reserves secure the Token.

3.?? USD Deposit Token (USDx): This represents a tokenised limited partnership agreement with returns equivalent to approximately 15% of USD money market funds. The underlying asset is a USD Demand Deposit, targeting a net return of about 0.75%. RainFin is the general partner, and Caep Asset Managers manage the asset, backed by bank deposit-audited reserves.

4.?? USD Savings Token (USD-ST): Offers exposure to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) through OUSG, targeting a net return of approximately 4.75%. RainFin is the General Partner, with asset management by Caep Asset Managers.

Try Our Alpha App

We invite you to try our Alpha App and experience firsthand the benefits of purchasing assets as tokens. See for yourself the added utility and transparency this innovative approach provides over traditional investment channels. Please see the link to the Alpha environment we have made for live testing. It is for invited testers only. https://app.alpha.rainfin.com/ Please understand it is alpha, but the products are natural, as is the cash, so enjoy. Many features in testing will be released over the next few weeks - specifically: Send, Borrow and multi-product swop.

Why This Matters

RainFin is uniquely positioned as a regulated crypto asset services provider and a regulated financial services provider. We're pioneering the tokenisation of real-world assets, making them accessible to a global audience using South African financial and company law. This isn't just a first for South Africa—it's a groundbreaking step on the international stage.

We're creating a secure, efficient, and transparent investment structure by leveraging our regulatory expertise and innovative approach. Our tokens align your interests with the performance of the underlying assets, providing a tangible connection to real-world value while offering the convenience and flexibility of digital assets.

We're excited about the future and what it means for our investors and partners. With RainFin, you're investing not just in assets but in a vision of a globally connected, digitally empowered financial landscape.

Thank you for being part of this journey with us. Feel free to reach out if you have any questions or want to learn more. Let's make history together!#AssetTokenization #Blockchain , #DigitalAssets , #Tokenization , #RealWorldAssets , #RainFin , #CryptoAssets , #FinanceInnovation , #FinancialServices, #SouthAfricaFinance, #EnCommanditePartnership?