The market creator needs to specify:

1. The token standards compatible with wrapping and fractionalizing
2. Whether it's an investment or financing market
3. The accepted currencies and success criteria of a sale
4. The compliance rules (KYB/KYC/KYT) for the market users
5. The accessibility of the market (private or public)

Specify Token Standards

This step is crucial in maintaining the integrity and appeal of the market:

First, market creators must determine the appropriate token standards compatible for wrapping and fractionalizing assets. With Omnichain capabilities, these tokens can be distributed across multiple blockchains without fragmentation, ensuring interoperability.

It is important to ensure compatibility with established blockchain standards. The Token Market Infrastructure supports a variety of ERC standards, which are crucial for the interoperability of tokens across different platforms and chains:

With Omnichain, the total supply is synchronized across all supported chains, providing issuers and investors with unified liquidity across networks. This ensures that no matter where the tokens are traded, the supply remains consistent across blockchains.

These standards enable the wrapping of different types of assets, ensuring they can be effectively managed and traded on-chain.

For example, you can deploy a market that distributes Exchange-Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Carbon Credits, or Artwork to investors. These assets can be issued by asset managers, brokers, or any type of institution or consumer, ensuring a diverse and robust marketplace.

Define Sales Types

Market creators must also define how tokenized assets will be distributed. They decide whether the market will function as an investment or financing market. This decision dictates the nature of the transactions and the relationship between investors and issuers.

The two primary distribution types are:

• Investment Market: Investors purchase tokens representing a share of the asset.
• Financing Market: Tokens are issued backed by physical or financial assets, allowing issuers to raise funds. These tokens act as collateral, and issuers repay investors based on predefined conditions.

Set Sale Structures

Organizing the sale process and ensuring it aligns with market demands and regulatory requirements. This involves several key components:

1. Accepted Currencies and Success Criteria

Set the accepted currencies and define the success criteria for the sale. This involves determining the currencies that can be used for transactions and establishing clear criteria for a successful sale:

• Accepted Currencies: Define which currencies can be used for transactions within the market across all chains.
• Success Criteria:
  • Hard Cap: The maximum amount of funds that can be raised during the sale. Once this cap is reached, no additional tokens can be sold.
  • Soft Cap: The minimum amount of funds needed to consider the sale successful. If this cap is not reached, the sale may be cancelled, and funds returned to investors.

2. Timing Sales Events

• Start Date: The date and time when the sale will begin. It is important to set this in advance and communicate it to potential investors.
• End Date: The date and time when the sale will conclude. This helps create a sense of urgency and ensures the sale process is time-bound.

Create Compliance Rules

Onboarding involves bringing issuers and investors onto the platform. Define who can issue and invest in assets within your market where only approved participants can interact, ensuring that all participants meet your compliance standards.

Market Creators can use the ComPilot Crypto AML Compliance Solution widget, integrated into the Token Market Infrastructure, to:

• Onboard participants, add their information, and upload their documentation (ID, proof of address, etc.).
• Check participants against sanction lists, PEP (politically exposed persons) lists, and adverse media records.
• Assign a verified wallet to each participant through the KYC/KYB service.
• Gate the platform, ensuring only users who have completed the verification checks can access the market.
• After verification, participant activity is continuously monitored via KYT, with each transaction requiring an additional eligibility check to maintain compliance.

Define the Accessibility of the Market

Deciding whether to make your market public or private is a key strategic decision. This choice affects the accessibility of the market and the potential investor base:

• Public Market: Open to a broader audience, potentially increasing liquidity and market reach.
• Private Market: Restricted access to a select group of investors, offering more controlled and exclusive investment opportunities.

1. Issuers

Issuers are central to the market's functionality. Depending on the market's configuration, issuers can operate in either an open or closed environment:

• Open Market: Anyone can issue assets, making it easy for a diverse range of issuers to participate.
• Closed Market: Issuance is permissioned, with the market creator/admin granting access to selected issuers.
• Invite Investors: Issuers can invite their investors, blending permissioned issuance with a controlled investor base.

2. Investors

Investors can be either open to the general public or restricted to a specific group:

• Open Market: Anyone can invest, maximizing potential market liquidity.
• Closed Market: Only invited investors, who are vetted by the market creator or issuers with the appropriate role, can participate.