Primary distribution places units into holders under enforced eligibility, and lifecycle servicing runs coupons, dividends, and corporate actions as ledger events. The security lives on the ledger for its full life, not just at issuance.
Units move from issuance into the hands of holders through allocations the ledger validates against who is permitted to hold them.
Transfer restrictions defined at issuance — jurisdiction, investor class, lockups — are checked by the ledger on every primary allocation. An ineligible allocation fails rather than settling and being unwound later.
Where payment is on-ledger, units and settlement asset change hands in one atomic operation. Neither leg can complete without the other, eliminating principal risk in the primary sale.
Each primary allocation writes the holder, amount, price basis, and eligibility determination to the chain. The distribution is a reconstructable history, not a spreadsheet reconciled after the fact.
The holder register is the ledger itself, updated as allocations settle. There is no separate book to reconcile against the tokens in circulation.
Scheduled income is calculated from on-ledger terms and holdings, then settled to the register of record.
Coupon rate, day-count, and dividend entitlement are read from the terms encoded at issuance. Payments are computed from the record rather than from a separately maintained schedule.
Entitlement is fixed at a defined record date by snapshotting the on-ledger register. Who gets paid is derived from ledger state at a specific, verifiable point.
Income payments settle atomically to entitled holders, so a distribution either completes for a holder or does not, with no partial or duplicated payment. Every payment is written to the chain.
Where the governing jurisdiction requires withholding or reporting, the servicing layer captures the basis alongside each payment. The tax and regulatory trail is generated from the same record as the payment.
Redenominations, splits, calls, and consent events are applied as controlled, authorized changes to the on-ledger security.
Corporate actions are initiated by owner or agent keys under ML-DSA-65 signatures. A structural change to the security requires the same authorization discipline as issuance itself.
Splits, consolidations, and redenominations are applied uniformly across all holdings in a single defined event. Every holder's position transforms under the same rule at the same ledger point.
Where terms require holder consent, votes are cast and tallied against the register of record. Consent is measured from actual holdings, not from an off-ledger proxy count.
Partial redemptions and mandatory actions are allocated by an auditable, rule-based method written to the chain. How each holder was selected is part of the permanent record.
Every servicing event references the sealed asset and updates the tamper-evident chain, keeping the security and its backing in lockstep.
Coupons, dividends, and actions all reference the sealed asset behind the units. Servicing that would contradict the asset's state is caught before it settles.
Each servicing event is appended to the chain linked to its predecessor. The full life of the security — every payment and action — forms one verifiable, ordered record.
At any point an auditor can reconcile units outstanding, entitlements paid, and the backing asset from the ledger alone. Reconciliation is a query, not a project.
Servicing records, holder registers, and payment histories remain resident in the owner's jurisdiction. The security is administered where its law applies.