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The ERC3643 Security Token Standard

The ERC3643 standard is a specialized framework designed for RWA tokenization. Penomo is member of the ERC3643 Association initiated by Tokeny, including members such as Chainlink Labs, Applied Blockchain and more. ERC3643 is an open-source suite of smart contracts that enables the issuance, management, and transfer of permissioned tokens. Its built-in decentralized identity framework, ONCHAINID, ensures only users meeting pre-defined conditions can become token holders, even on permissionless blockchains. It ensures that tokens can only be triggered when both the investor rules (via ONCHAINID) and offering rules are fulfilled, ensuring compliance at the smart contract level. Some of the benefits and compliance features include:

  • Investor Whitelisting: Ensures that only verified and authorized investors can hold or transact with the tokens.
  • Document Accessibility: Facilitates the association of tokens with relevant legal and regulatory documents, allowing investors to access necessary information easily.
  • Partitioned Ownership: Supports complex ownership structures and allows for differentiated shareholder rights within the same asset.
  • Compliance Functions: Includes functions to restrict transfers in certain conditions, ensuring adherence to legal and regulatory requirements.
  • Token Recovery: Provides mechanisms for the recovery and reallocation of tokens in case of loss or theft, safeguarding investor interests.

By utilizing the ERC3643 standard, the penomo platform ensures that the tokenization process offers a secure and compliant investment framework.