Method, Apparatus, and Computer-Readable Medium For Compliance Aware Tokenization and Control of Asset Value

Abstract

An apparatus, computer-readable medium, and computer-implemented method to facilitate scalable compliance and issuer governance of decentralized financial transactions especially for the trade and transfer of tokenized securities. The resulting Compliance Aware Tokens contain the rulesets to restrict transactions and facilitate regulatory reporting and oversight. The embodied process, includes of a novel combination of compliance workflows, attribute verification tools, smart contracts and other ledger controls, provides a decentralized Attribute Based Access Control (ABAC) capability. ABAC patterns are extended to govern global financial transactions without the need for an active intermediary.

What is claimed is: 
     
         1 . A computer system of networked computing devices for governing peer-to-peer object transactions on a distributed ledger whereby transaction lock mechanisms can be enforced without consulting a centralized approval authority, the distributed ledger being a cryptographically secured ledger that includes shared nodes respectively executed by multiple parties and uses a consensus mechanism between the parties to authorize transactions to be entered on the ledger, the system comprising:
 a plurality of user wallets stored in computer memory on the computing devices, each wallet having an address corresponding to the identity of a user;   wherein each wallet has user attributes of the corresponding user associated therewith, whereby the user attributes, in combination with environment attributes define a key;   digital token data structures stored on the computing devices, each digital token data structure representing one or more assets and having rules associated therewith, the rules specifying user attribute conditions and environment attribute conditions required for the transfer of the corresponding at least one asset;   a rules engine configured to enforce transactions of each digital token data structure by applying the rules associated with the digital token data structure specified in a requested transaction to the key defined by the user attributes of the wallets associated with all users participating in the requested transaction and environment attributes specified by the rules.   
     
     
         2 . The computer system of  claim 1 , wherein the rules are stored as a smart contract on nodes of the distributed ledger. 
     
     
         3 . The computer system of  claim 1 , wherein the user is one of an individual or a group of individuals. 
     
     
         4 . The computer system of  claim 1 , wherein the assets are securities and the rules specify regulations applicable to the security. 
     
     
         5 . The computer system of  claim 4 , wherein the user attributes include at least one of a jurisdiction associated with the user, a user accreditation status, and a user investor type. 
     
     
         6 . The computer system of  claim 4 , wherein the user attribute conditions include at least one of a regulating jurisdiction condition, a user accreditation status condition, and a user investor type. 
     
     
         7 . The computer system of  claim 4 , wherein the environment attributes relate to the context of the transaction. 
     
     
         8 . The computer system of  claim 1 , wherein the rules represent at least one of issuer policies, and securities laws and regulations.