The Issue phase is the process where asset tokens are distributed to owner accounts on a network. Unless the tokenization process is being conducted for a legacy asset, the issuance process likely involves an offering – and in most cases, a securities offering in nearly every global jurisdiction.
During the securities offering, investors purchase the security interests, and the investors’ information is recorded on the digital record of security holders, members, or shareholders.
Issuance of the security tokens to accounts can take place when all the business, legal and regulatory components are in place, satisfying the requirements in the Structure phase with the asset being defined, parameterized, and bound over to a custodian who maintains independent audit and controls with all of the legal documentation and enumeration completed in the Structure phase.
Upon finalization of an offering, asset tokens are distributed to respective accounts of investors.