Token holders key custody

Token holders or investors need to have a secure way to safekeep their tokens. They can either keep their tokens with a custodian or do self-custody.

Setup with a custodian

The usual setup in combination with the Offering Manager is that a custodian is responsible for the management of token holder keys and tokens. On the one hand retail investors in most cases do not want to deal with the technical complexity of key management. On the other hand institutional investors are mostly not even allowed to handle custody on their own.
Regulated custodians such as banks or specialized digital asset custodians utilize sophisticated key management software from vendors such as Fireblocks, Metaco, GK8 or Copper.
The Offering Manager is connected to they key management software of the custodian through an API. There are automated checks to verify whether a particular investor already has a wallet or not. If not, a wallet is automatically created to which tokens will be distributed.
If you are a bank and you want to use the Bitbond Offering Manager, you can also engage a third-party custodian or you offer custody yourself with the help of one of the above listed key management technologies. At Bitbond we can support the necessary technical integration.

Setup with self-custody

There are situations where it can make sense to offer self-custody for investors. This is for example the case when the investor base is international and only relatively small investment amounts are expected.
The self-custody user flow is different depending on which blockchain is used for tokenization.

Tokenization done on Stellar

In this case investors need to claim their tokens on the website of the issuer. Bitbond can provide a way for investors to either submit an existing Stellar address to which their tokens will be sent.
If the investor doesn't have a Stellar address yet, a public private keypair will be created in the investor's browser. They need to download a PDF file which contains public private keypair and an ID code. In the next step they have to enter the ID code as a confirmation that they saved the keypair PDF. Then the tokens are sent to the newly created address.
If the investor already does have an address, they simply have input the address in the claim process and create a trustline in their wallet for the new token. Then tokens are distributed to the investor.

Tokenization done on an EVM chains

When the Offering was conducted via the Token Sale functionality of Token Tool, the investor has to claim tokens after the sale is over. Token Tool provides an interface for this.
The token sale might also have been set up in a way that tokens are distributed to investors automatically. In this case the investors provided their addresses during the sale and don't need to do anything after the sale is over.