Security Token Purchase Flow
Security Token Purchase Flow with On-Chain Compliance and Encryption
Last updated
Security Token Purchase Flow with On-Chain Compliance and Encryption
Last updated
The diagram below illustrates the underlying architecture and process flow involved in the purchase of security tokens on our platform. It outlines the key components—ranging from user onboarding and on-chain identity verification to compliance validation, token issuance, and secure transaction handling—ensuring a fully compliant and secure investment experience.
1. Wallet Setup and Deposits
Users start by depositing Tether (USDT) / USDC / $ZOD into their on-platform wallet, which is used to manage funds and facilitate both deposits, withdrawals, and token purchases.
2. KYC Verification and On-Chain Identity Registration
Users complete a KYC verification process. Upon approval, their identity is recorded on-chain via the IdentityRegistryV1 smart contract, and relevant claims (e.g., residency, investor type) are stored through ClaimRegistryV1. Failed attempts prompt users to retry.
3. Marketplace Access and Asset Selection
Once registered, users access a curated marketplace of tokenized assets, select an investment, and initiate the purchase using their wallet balance.
4. On-Chain Compliance Check
Each transaction is validated by the ComplianceV1 smart contract, which checks the user’s identity and claims for regulatory compliance. Non-compliant users are prevented from completing the purchase.
5. Security Token Transfer
Upon successful compliance, RWA tokens representing asset ownership are transferred to the user via the RWA Token Treasury smart contract.
6. Privacy-Preserving Encryption
Sensitive operations are secured using Partially Homomorphic Encryption (PHE), handled by the Cryptography Engine Smart Contract, ensuring private and compliant on-chain processing.