The SPV Tokenization Process
Understanding how assets are transformed into digital tokens through a Special Purpose Vehicle
SPV Formation
Establish a legal entity in a suitable jurisdiction to hold assets and issue tokens
Legal Framework
Create documentation defining token rights, governance, and compliance requirements
Asset Transfer
Transfer target assets to the SPV through legal title transfer or rights assignment
Token Creation
Deploy smart contracts on blockchain representing ownership shares in the SPV
Compliance Layer
Implement KYC/AML procedures and regulatory requirements in smart contracts
Distribution
Issue tokens to investors through private offering or public sale with regulatory compliance
SPV Tokenization Flow
Special Purpose Vehicle
Legal entity holding the assets
Underlying Assets
Real estate, equity, debt, or other assets transferred to SPV
Smart Contracts
Blockchain code defining token behavior and compliance rules
Token Holders
Investors who purchase and own the tokenized shares of the SPV
Key Benefits of the SPV Tokenization Model
Legal Clarity
SPVs provide a clear legal structure that defines the relationship between token holders and underlying assets, reducing legal uncertainty.
Asset Protection
Assets held in an SPV are segregated from the original owner's other assets, providing protection from unrelated liabilities.
Tax Efficiency
SPVs can be structured to optimize tax treatment for both issuers and investors, particularly in tax-neutral jurisdictions.
Jurisdictional Flexibility
SPVs can be established in jurisdictions with favorable regulatory environments for digital assets and blockchain technology.
Choose the Right Structure for Your Tokenization Project
Select the optimal legal structure for your tokenized assets. SPVs offer tax efficiency, privacy, and regulatory compliance across key jurisdictions.
Wyoming DAO LLC
First U.S. state to recognize DAOs as legal entities, offering a progressive framework for blockchain-based organizations with LLC protection. Recommended for non-US investors.
Setup Cost
$3,000-$5,000
Annual Fee
$110-$260
Timeline
3-4 weeks
BVI Limited Company
The British Virgin Islands offer a tax-neutral jurisdiction with strong privacy, minimal reporting requirements and a respected common-law legal system ideal for international business.
Setup Cost
$6,000-$10,000
Annual Fee
$800-$2,700
Timeline
5–7 weeks
Panama IBC
Strong asset protection, banking privacy, and territorial taxation, making it ideal for global business operations and investments.
Setup Cost
$5,000-$8,000
Annual Fee
$600-$1,200
Timeline
5–7 weeks
SPV Jurisdiction Options
Compare key features across jurisdictions to find the ideal structure for your tokenization project on our platform
| Jurisdiction | Setup Cost | Annual Maintenance Fee | Tax Benefits | Regulatory Environment | Ideal For | Timeline |
|---|---|---|---|---|---|---|
| Wyoming DAO LLC | $3,000-$5,000 | $110-$260 | Pass-through taxation | DAO-friendly, progressive | Blockchain projects | 3-4 weeks |
| BVI Limited Company | $6,000-$10,000 | $800-$2,700 | Tax-neutral | Privacy-focused, stable | International business | 5-7 weeks |
| Panama IBC | $5,000-$8,000 | $600-$1,200 | Territorial taxation | Strong asset protection | Privacy-focused business | 5-7 weeks |
Wyoming DAO LLC
Wyoming is the first U.S. state to recognize DAOs as legal entities, offering a progressive framework for organizations with the benefits of LLC protection. It is particularly attractive to non-US investors looking to establish a legal structure for their project.
Key Benefits
Legal recognition
First U.S. state with formal DAO legislation.
Pass-through taxation
LLC tax benefits with flow-through structure.
Privacy protection
Strong privacy protections for members.
Blockchain-friendly
Progressive regulatory environment.
No state income tax
No state income or franchise tax.
Cost Breakdown
| Item | Cost | Description |
|---|---|---|
| Formation Fee | $3,000 | State filing and registered agent |
| Registered Agent | $50-$200/year | Required by law |
| Annual Report Fee | $60/year | State maintenance fee |
| Legal Documentation | $1,500-$3,000 | Operating agreement and DAO protocols |
| Total Initial Setup | $4,500-$6,200 | Approximate first-year cost |
Legal Requirements
- 1
File Articles of Organization
Submit the required documentation to the Wyoming Secretary of State.
- 2
Designate a Registered Agent
Appoint an agent with a physical address in Wyoming.
- 3
Draft the DAO LLC Operating Agreement
Create agreement with smart contract governance provisions.
- 4
Establish Governance Protocols
Define voting mechanisms and decision-making processes.
- 5
Implement KYC/AML Procedures
Set up compliance processes for token-holders.
SPV Structure
Wyoming DAO LLC
Smart Contract
Governance Rules
Token Holders
Voting Rights
Legal Compliance
Asset Management
Operations
Platform Advantages
Fractional Ownership
Our platform enables dividing ownership into smaller, more accessible units, lowering the barrier to entry for investors
Increased Liquidity
Our solution facilitates easier transfer of ownership stakes with built-in secondary market capabilities
Automated Compliance
Our platform enforces regulatory requirements through automated processes and compliance tools
Streamlined Investor Management
Our solution simplifies cap table management and investor communications with integrated tools
Timeline
Week 1: Initial Setup
File Articles of Organization and appoint registered agent.
Weeks 2–3: Documentation
Draft and finalize Operating Agreement with DAO provisions.
Weeks 3–4: Final Setup
Complete setup and begin operations.
BVI Limited Company
The British Virgin Islands offer a tax-neutral jurisdiction with strong privacy, minimal reporting requirements and a respected common-law legal system ideal for international tokenization projects.
Key Benefits
Tax-neutral
No corporate, capital-gains or withholding taxes.
Privacy protection
Strong confidentiality for company information.
Minimal disclosure
Limited public reporting requirements.
Common-law system
Respected legal framework based on English law.
Political stability
Stable political and economic environment.
Timeline
Week 1: Initial Setup
Name reservation and document preparation
Week 2: Incorporation
Filing with Registry and agent appointment.
Weeks 3-4: Documentation
Corporate documents and resolutions
Weeks 4-5: Legal Review
Legal compliance and documentation review
Weeks 6-7: Final Setup
Complete setup and begin operations
Panama IBC
Panama International Business Companies offer strong asset protection, banking privacy, and territorial taxation, making them ideal for global tokenization projects requiring privacy and asset protection.
Key Benefits
Territorial taxation
Only Panama-sourced income is taxed.
Asset protection
Strong laws protecting business assets.
Banking privacy
Confidentiality in financial matters.
No currency restrictions
Freedom from exchange controls.
Flexible structure
Minimal corporate requirements.
Timeline
Week 1: Initial Setup
Name reservation and document preparation
Weeks 2–3: Incorporation
Filing with Public Registry and agent appointment.
Weeks 3-4: Documentation
Corporate documents and resolutions
Weeks 4-5: Legal Review
Legal compliance and documentation review
Weeks 6-7: Final Setup
Complete setup and begin operations
Disclaimer
The information provided on this website is for general informational purposes only and does not constitute legal, tax, or investment advice. All information is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information presented. Consult qualified professionals in the relevant jurisdictions before taking any action based on the information provided.