Tokenization guide

How to build a tokenized fund on KXCO Armature

A factual, step-by-step path to launching a tokenized fund on Armature, the post-quantum permissioned L1 built for regulated finance. Custodian-held, with licensed brokers and a fund administrator attached, NAV verified live on-chain by oracle, investor-KYC-gated, and approved by KXCO before launch.

Non-negotiable requirements

  • Contact KXCO first. No fund can be launched on Armature without onboarding through KXCO.
  • A regulated custodian. Fund assets are held by a regulated custodian — never by KXCO.
  • Licensed broker(s) + a fund administrator. The fund must have licensed broker(s) and an administrator attached; the administrator strikes NAV.
  • A live NAV oracle. A KXCO-approved oracle publishes NAV and holdings verification on-chain — continuously.
  • Investor KYC and KXCO approval. Every investor is KYC-verified and eligibility-checked; the structure and contracts are approved before launch.

Step-by-step

  1. 1

    Contact KXCO

    A fund launch begins with onboarding. KXCO assesses the strategy, jurisdiction, investor base and the regulatory path, and confirms the broker, administrator and custodian arrangements before anything is built.

  2. 2

    Complete KYC / KYB and receive a KxcoIdentity

    The fund manager entity and principals complete KYC/KYB through KXCO’s Sumsub-based onboarding and receive a post-quantum KxcoIdentity (ML-DSA-65, NIST FIPS-204) recorded on Armature as their verifiable on-chain identity.

  3. 3

    Appoint a regulated custodian for fund assets

    The fund’s assets are held by a regulated custodian, running on KnightsVault custody infrastructure. KXCO operates the platform and never takes possession of fund assets.

  4. 4

    Attach licensed broker(s) and a fund administrator

    The fund must have licensed broker(s) and a fund administrator attached. The administrator is responsible for striking the net asset value (NAV) and for the books and records that the on-chain fund references.

  5. 5

    Connect a live NAV oracle

    A KXCO-approved oracle publishes the administrator-struck NAV and holdings verification on-chain on an ongoing basis, giving investors live, independent transparency rather than a delayed statement.

  6. 6

    KXCO review and approval

    KXCO audits the fund-unit contract, the broker / administrator / custodian arrangements, the offering and eligibility restrictions, the oracle feed and the compliance posture. The fund is not deployed until approved.

  7. 7

    Deploy the tokenized fund units on Armature

    On approval, the tokenized fund units (or share class) are deployed to Armature (Chain ID 1111111, EVM-compatible). Subscriptions and redemptions are gated to KYC-verified, eligible, KxcoIdentity-credentialed investors; transfers are permissioned; operations are authorized with ML-DSA-65 post-quantum signatures and anchored on-chain.

  8. 8

    Operate the fund on-chain

    Through life, the NAV oracle updates on-chain, subscriptions and redemptions are processed for eligible investors, distributions are recorded, and every event is anchored to the KXCO Identity Registry for a complete, verifiable audit trail.

Why Armature is the gold standard for tokenization

Most tokenization happens on anonymous, self-attested public chains. Armature is the opposite: a permissioned, post-quantum-secured, custodian-backed, oracle-verified, KXCO-approved settlement layer built for regulated finance.

Brokered, administered, custodied
Licensed broker(s), a fund administrator striking NAV, and a regulated custodian holding assets — the full institutional stack, attached and verified.
Live NAV on-chain
A KXCO-approved oracle publishes NAV and holdings verification continuously. Investors see the truth in real time, not a quarterly letter.
Post-quantum secured
Identity and authorization use ML-DSA-65 (NIST FIPS-204), verified natively on-chain (precompile 0x0b). Investor records that outlast the quantum threat.
Eligible investors only
KYC and eligibility checks on every investor; permissioned subscriptions, redemptions and transfers; KXCO compliance review before launch.
Instant finality, full audit trail
QBFT instant finality (~2s, no reorgs); every subscription, redemption, NAV update and distribution anchored on-chain.
Not anonymous DeFi
A permissioned, institution-grade fund layer — the opposite of an unregulated, pseudonymous pool.

Frequently asked

Can I launch a tokenized fund without licensed brokers?
No. The fund must have licensed broker(s) and a fund administrator attached, alongside a regulated custodian. These are mandatory and confirmed during KXCO onboarding.
Who strikes and verifies NAV?
The fund administrator strikes NAV; a KXCO-approved oracle publishes it on-chain continuously so investors have live, independent transparency.
Does KXCO hold the fund’s assets?
No. A regulated custodian holds the assets on KnightsVault custody infrastructure. KXCO is the platform and approval layer.
Who can invest?
Only KYC-verified, eligibility-checked investors carrying a KxcoIdentity credential. Subscriptions, redemptions and transfers are all permissioned.
How do I start?
Contact KXCO. A fund launch begins with onboarding, KYC/KYB, broker/administrator/custodian arrangements and compliance review — there is no self-serve path.

Ready to launch a tokenized fund?

You cannot deploy on Armature without onboarding. KXCO confirms feasibility, runs KYC/KYB, coordinates the custodian, oracle and (for funds) licensed brokers, audits your contracts, and approves the launch. Start the process now.

Contact KXCO to begin →All tokenization guides