Tokenization Layer
Novastro’s tokenization platform transforms real-world assets (RWAs) into compliant, programmable digital tokens using a modular infrastructure that combines legal structures (SPVs), technical containers (DTCs), and automation logic (smart contracts). This enables fractional ownership, streamlined compliance, and interoperable liquidity across DeFi ecosystems.
Tokenization Framework
At the core of Novastro’s model are two key mechanisms:
Special Purpose Vehicles (SPVs): Legal entities created to hold title and manage the off-chain asset (e.g., a real estate property or gold reserve). These entities enable regulatory compliance, custodial control, and enforceable legal rights.
Digital Twin Containers (DTCs): On-chain smart modules that mirror the asset’s legal and financial status. Each DTC contains data points like asset valuation, jurisdiction, compliance status, risk score, and income behavior.
Execution Flow – How Tokenization Happens Practically
Asset Onboarding
The asset originator (e.g., a real estate fund) submits the asset to Novastro’s onboarding interface.
A verification process is initiated, involving external auditors, appraisers, and legal partners.
A Special Purpose Vehicle (SPV) is created to hold legal title to the asset.
DTC Creation & Mapping
A DTC is deployed for the onboarded asset. This DTC includes asset metadata (valuation, risk, income logic), access rules, and ownership rights.
The SPV is cryptographically linked to the DTC, ensuring real-world enforceability.
Fractionalization & Token Minting
The asset value is divided into fixed units (e.g., 10,000 tokens for a $1M asset).
Each token represents a fractional claim to the SPV-held asset and entitles the holder to income and voting rights where applicable.
Tokens are issued to the originator or sold via a primary offering on Novastro or partner platforms.
Compliance Enforcement
Whitelisting, jurisdiction restrictions, and KYC/AML enforcement are automated using identity-based smart contracts.
Secondary trades are routed through Novastro’s compliance oracle to validate buyer eligibility in real-time.
Secondary Market & Yield Integration
Tokens can be listed on permissioned or open marketplaces.
Cash flows (e.g., rent, bond coupons) are distributed directly to token holders using on-chain accounting logic.
Tokens can be deposited into DeFi vaults, staked, or used as collateral based on asset risk profile.
Smart Contract Infrastructure
Each DTC is governed by an underlying smart contract framework with modules for:
Asset Valuation: Pulls real-time price data from oracle networks.
Income Distribution: Automates revenue sharing (e.g., rental income, interest payments).
Access Control: Restricts ownership based on identity, geography, or tier.
Audit & Monitoring: Logs every interaction, ownership transfer, and asset state change for regulator-friendly transparency.
Fractional Ownership Mechanics
Benefits of Novastro’s Approach
Compliance-Ready by Design: Legal and technical layers integrated from inception.
No Middlemen: Automation reduces friction and transaction costs.
Secure & Scalable: Every token is backed by legally enforceable claims and real-world audits.
Modular Extensibility: New asset classes can be tokenized by reusing the same DTC + SPV framework.
Novastro’s tokenization engine isn’t just theoretical—it’s structured to serve real issuers, investors, and institutions through verifiable processes and interoperable tools.
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