Core Concepts

Understanding these concepts ensures issuers, investors, and partners can use the platform correctly and compliantly.

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Real-World Asset (RWA) Tokenization

Definition

RWA tokenization is the process of converting the economic rights of a real-world asset—such as real estate, equity, debt, commodities, or cash flows - into digital tokens on a blockchain.

These tokens can represent:

• Ownership rights (equity)

• Debt obligations (loans, bonds)

• Revenue rights (royalty streams, profit shares)

• Claims to physical assets (commodity-backed tokens)

• Fund units or managed investment products

Why Tokenize RWAs?

• Liquidity & Fractionalization High-value assets can be divided into smaller investment units.

• Global investor access Investors worldwide can participate in compliant offerings.

• Faster, automated settlement Blockchain replaces multi-intermediary clearing with direct, rule-based transfer.

• Operational efficiency Compliance, reporting, corporate actions, and transfers become programmable.

• Transparency Token balances, transfers, and governance events can be publicly verifiable.

• Reduced administrative burden Digital ledgers replace manual cap tables and fragmented registries.

In Stobox 4, tokenization is built around compliance first, with all regulatory rules enforced automatically through the platform and smart contracts.

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Security Tokens & Security Token Offerings (STOs)

Security Tokens

A security token is a blockchain-based instrument that represents a regulated financial security. It is subject to securities laws, disclosure requirements, and investor protections.

Examples:

• Equity of a private company

• Tokenized shares of an SPV holding real estate

• Corporate bonds

• Fund interests

• Revenue-sharing agreements

These tokens embed rights such as dividends, interest, redemption, or voting.

STO (Security Token Offering)

An STO is a compliant fundraising event where investors subscribe to security tokens under a regulated exemption or registration.

Common frameworks include:

• US: Reg D, Reg S

• EU: Prospectus Regulation, AIFMD, MiFID II

• Globally: Private placements, professional investor offerings

Stobox 4 automates most components of an STO:

• Investor onboarding (KYC/KYB)

• Eligibility filtering

• Subscription agreements

• Token allocation

• Cap table updates

• Settlement

• Compliance enforcement

The STO Module is built specifically for issuers who must operate under strict legal frameworks.

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Programmable Assets

A programmable asset is a digital token whose behavior—rights, restrictions, and economic logic—is enforced by programmable smart contracts.

In Stobox 4, programmable assets allow:

• Automated compliance

• Automated lock-ups & vesting

• Scheduled distributions (dividends, interest)

• Transfer limits per user or jurisdiction

• Freeze & recovery mechanisms

• On-chain metadata

• Interoperability with external financial infrastructure

Programmability eliminates manual administrative work traditionally handled by lawyers, registrars, transfer agents, and compliance officers.

Stobox 4’s Vision for Programmable Assets

By embedding enforceable rules into tokens, Stobox 4 allows assets to self-regulate, reducing operational risks and increasing trust for investors and regulators.

Programmability is implemented through:

• STV3 Protocol

• DID-based identity checks

• Compliance engine

• Role-based access control

• Metadata structures

This creates a data-rich, legally grounded digital asset ecosystem.

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STV3 Protocol

STV3 is Stobox’s proprietary tokenization protocol designed specifically for RWAs and regulated securities.

What STV3 Enables

• Identity-bound token ownership

• Automated compliance enforcement

• Investor category and jurisdiction restrictions

• Transparent rule-based transfer validation

• Corporate action automation (mint, burn, freeze, redeem)

• On-chain metadata linking legal documents and economic terms

• Upgradeability and modularity

STV3 is not a generic ERC-20. It is a governance and compliance-focused token standard aligned with real-world finance.

Why STV3 Is Critical

Unlike utility tokens, securities must:

• Follow legal restrictions

• Control who can hold them

• Enforce lock-ups

• Track corporate actions

• Maintain auditable histories

• Represent legally binding rights

STV3 converts traditional securities governance rules into machine-enforced logic, reducing human error and regulatory risk.

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Stobox DID (Decentralized Identity)

A Stobox DID is a unique, blockchain-bound digital identity created for each investor or issuing entity after successful KYC/KYB verification.

Key Features

• One DID per person or business

• Carries verified attributes

• Proof of identity, residency, investor classification

• Links wallet addresses to verified profiles

• Used for on-chain verification during transfers or subscriptions

Why DID Matters

Security tokens cannot circulate freely. Regulations require knowledge of:

• Who holds the token

• In which jurisdiction they reside

• Whether they are accredited

• Whether they passed AML screening

STV3 checks DID attributes before allowing transactions. If any rule is violated, the transfer is blocked automatically.

DID = Compliance Passport

A DID functions as a compliance passport, enabling:

• Fast onboarding

• Cross-project investment with one identity

• Reusable regulatory verification

It also gives issuers and regulators confidence that participants meet required standards.

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Business Wallet (Fireblocks Embedded Wallets)

The Business Wallet in Stobox 4 is a Fireblocks Embedded Wallet, integrated natively into the issuer dashboard. These wallets are standard Fireblocks-powered embedded wallets, not MPC configurations managed by the issuer.

Fireblocks handles wallet generation, key protection, and secure transaction workflows within its institutional-grade infrastructure, while Stobox 4 orchestrates permissions, flows, and controls.

What Is a Fireblocks Embedded Wallet?

A Fireblocks Embedded Wallet is a programmable, secure wallet infrastructure designed for enterprise applications. Key features include:

• Automatic wallet creation inside Stobox 4 for issuers

• No private key exposure to users or developers

• Fireblocks infrastructure handles secure key storage and signing

• Compatibility with supported blockchains (e.g., Arbitrum, and other chains used for STV3 tokens)

• Transaction policies and audit trails handled at the platform level

The wallet is fully integrated within Stobox 4’s issuer interface, making it simple for companies to operate blockchain assets without deep crypto expertise.

How It Differs from MPC Wallets

Although powered by Fireblocks security, embedded wallets differ from traditional MPC wallets:

Feature	Fireblocks Embedded Wallet	MPC Wallet (general concept)
Key management	Fully abstracted	User/executive manages MPC shares
Signing method	Managed by Fireblocks infra	Distributed signing among devices/people
User responsibility	Zero key handling	Multi-party approval, key share control
Operational complexity	Very low	Higher, requires governance setup
Best for	Streamlined enterprise workflows	High-governance treasury environments

Stobox 4 intentionally uses embedded wallets to keep tokenization operations simple, secure, and accessible.

Why Stobox Uses Embedded Wallets

• No Key Management Burden Issuers do not need to store, split, or protect private keys. All sensitive operations occur within Fireblocks’ secure environment.

• Instant Wallet Setup Wallets are created automatically when the issuer begins onboarding—no manual configuration required.

• High Security Without High Complexity Fireblocks specializes in secure digital asset custody, used by hundreds of institutions worldwide.

• On-Chain Actions Become Safe & Structured Stobox 4 uses embedded wallets to authorize:

  • STV3 token deployments

  • Minting / burning actions

  • Treasury transfers

  • STO settlement operations

  • Corporate action executions

• Fits Tokenization Use Cases Better Most tokenization issuers are companies with limited crypto ops capability. Embedded wallets free them from managing cryptographic workflows.

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Compliance Automation

Compliance automation is embedded into every layer of Stobox 4.

Components

• KYC (Know Your Customer)

• KYB (Know Your Business)

• KYT (Know Your Transaction)

• Sanctions screening

• AML risk scoring

• Investor categorization

• Jurisdictional restrictions

These checks are enforced:

• During onboarding

• During investing

• During transfers

• During corporate actions

How It Works Technically

1. DID stores verified investor attributes

2. Compliance engine evaluates rules

3. STV3 smart contracts enforce decisions on-chain

4. Invalid transactions are rejected instantly

Stobox 4 treats compliance as a core protocol layer, not an afterthought.

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Stobox 4 | Every Tool You Need to Tokenize Real-World AssetsStobox 4