Tokenized funds
Fund tokenization: how tokenized funds work
Fund tokenization is the process of recording a fund’s units or shares as tokens on a blockchain. The fund keeps its legal structure, administrator and documents; the token becomes the record of who holds each share class, so subscriptions, redemptions, NAV publication and transfer restrictions can be run and checked on-chain.
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Educational content, not legal, tax or investment advice. Each fund, manager and administrator needs its own authorisations where it operates.
What is a tokenized fund?
A tokenized fund is an investment fund whose units or shares are represented by tokens. Nothing about the fund’s legal nature has to change: it still has a manager, an administrator, offering documents and a net asset value (NAV) per share calculated by the administrator. What changes is the register. Instead of only a spreadsheet or a transfer-agent database, each share class has a token, and minting, burning and transfers of that token reflect subscriptions, redemptions and changes of holder.
Because fund units are usually regulated, the token is normally permissioned: only eligible, verified investors can hold it, and every transfer is checked against the fund’s rules. On Libertum, share-class tokens use ERC-3643.
What is a tokenized money market fund?
A money market fund invests in short-term, high-quality instruments and aims to keep its value stable while paying income. A tokenized money market fund issues its units as tokens. The mechanics stay those of an open-ended fund: investors subscribe and redeem on dealing days at a NAV, the administrator calculates that NAV, and eligibility rules decide who may hold units.
In T-Suite Funds, those mechanics map to:
- NAV publication: the administrator’s NAV pack is validated, approved and published on-chain with its SHA-256 hash.
- Dealing: calendars and cut-offs, forward pricing at the next NAV, minimums and investor eligibility per share class.
- Payments: by bank, or in USDC to the fund’s address; USD classes can also be paid from the investor’s USDC custodian balance after two-factor verification.
- Register: approved dealing runs mint or burn units on-chain and produce a branded contract note.
Whether a tokenized money market fund can be offered, and to whom, depends on the fund’s domicile, its authorisation and the investors’ jurisdictions. See the tokenization regulation hub.
How does private credit tokenization work?
Private credit means loans and notes made outside public bond markets. It can be tokenized in two common ways: a note or loan issued by a vehicle is itself represented by a token, with interest paid as distributions and principal returned at maturity; or a private credit fund, often closed-ended, issues its interests as tokens.
For a direct note, T-Suite’s Debt class in the Tokenization Wizard captures instrument type, seniority, security and covenants. For a closed-ended fund, T-Suite Funds handles the private-markets cycle:
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01
Commitments and closings
Import commitments by investor and closing; on approval, units are issued in proportion to each commitment.
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02
Capital calls
Draft a call, split pro rata to commitments, approve it and send each investor a branded PDF notice. A call cannot exceed the unfunded commitment.
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03
Distributions
Record return of capital (including recallable amounts), income and gains, with withholding where it applies.
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04
Capital accounts
Each investor gets an ILPA-style capital account: commitment, called, paid, unfunded, distributions by type and NAV.
How does T-Suite Funds work?
T-Suite Funds is software for fund administrators. It runs inside T-Suite as its own Funds tab, under the administrator’s brand. One administrator (the operator) serves many fund managers, and each manager sees only its own funds.
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01
Set up the operator
Add managers, create open- or closed-ended funds and their share classes, invite staff by role (operator admin, preparer, approver, auditor) and set branding and calendars.
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02
Choose approvals
Each fund picks one to four approvers. Freeze, forced transfer and wallet recovery always need two people.
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03
Import and publish the NAV
Upload the NAV pack; a move beyond the fund’s tolerance needs a written reason. After approval, the NAV is published to the on-chain NAV registry with the pack’s SHA-256 hash.
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04
Run dealing
Instructions arrive from investors in T-Suite, from the administrator’s TA system by CSV, or over the API. After the cut-off and the NAV, a run applies fees and gates, mints or burns units and issues contract notes.
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05
Reconcile and post
Match the on-chain register against the administrator’s register and the bank statement on exact amounts, then export balanced journals in CSV or XLSX.
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06
Integrate
A REST API described in OpenAPI 3.1, signed webhooks, a TypeScript SDK, the tsuite CLI and an MCP server for AI assistants, which can read and draft but never approve or move money.
Read the step-by-step Funds guide or the Funds product overview.
Who stays the transfer agent and NAV agent?
The fund administrator. In T-Suite Funds the administrator remains the NAV calculation agent and the transfer agent. The software imports the administrator’s numbers, enforces the fund’s rules, publishes what the administrator’s people approve, reconciles and exports. Libertum is not the administrator, transfer agent, manager or issuer of any fund on the platform, and Funds gives no one a licence.
Libertum, S.A. de C.V. holds an El Salvador DASP licence from the CNAD, registry entry PSAD-0094. It does not authorise issuance and does not cover structuring, promotion or management of investment products. See Libertum’s licences.
How much does T-Suite Funds cost?
USD 1,000/month for the operator, with unlimited funds, plus a distribution fee at a rate agreed with each administrator; the standard platform distribution rate does not apply to Funds dealing. Funds is not self-serve: request access from Settings, Manage Subscription, and Libertum reviews the request. See the plans page.
If a fund’s share class already exists as a token issued elsewhere, Token Import brings it into T-Suite as a read-only Mirror first; on EVM chains it can move to Operate once roles are granted.
Funds in 90 seconds
See the operator view with every manager, fund and share class; a NAV pack imported, checked and published on-chain with its fingerprint; investors subscribing at the next NAV and paying by bank, in USDC or from their balance; dealing runs that mint units and send contract notes; capital calls for closed-ended funds; and three-way reconciliation on exact amounts.
Transcript: Funds in 90 seconds
Fund administration still runs on spreadsheets, emails, transfer-agent exports and bank PDFs. T-Suite Funds puts it all in one place, on-chain, under your brand.
See every client manager, fund and share class, with the last NAV published for each.
Each fund chooses one to four people to approve its work, and every sensitive step waits for them.
Import the administrator's NAV file. Every line is checked, and breaches need a written reason.
Once approved, the NAV is published on-chain with the pack's fingerprint.
Investors subscribe through the fund, forward priced at the next NAV.
They get a payment reference and exactly how to pay: by bank, in USDC, or straight from their balance.
Dealing runs apply fees and gates, mint the units, and send every contract note.
Closed-ended funds get commitments, capital calls and distributions.
Three-way reconciliation matches exact amounts only, so a short payment is never a silent match.
Everything is in a tamper-evident log, with an evidence pack for your auditors.
T-Suite Funds. One thousand US dollars a month, with unlimited funds. Request access at libertum dot io.
Keep exploring
- T-Suite Funds Infrastructure for fund administrators.
- Funds guide Step by step, by role.
- Funds product overview Capabilities, status and pricing.
- ERC-3643 standard The permissioned standard used for share classes.
- T-Suite The tokenization platform Funds runs inside.
- Asset management For asset managers running several offerings.
- Plans and pricing Funds and other modules.
- Token Import Bring an existing share-class token.
- Asset tokenization RWA tokenization explained.
- Tokenization regulation What to check before you issue.
Fund tokenization FAQ
Does tokenizing a fund change its legal structure?
Not by itself. The fund keeps its domicile, documents, manager and administrator. The token becomes the register of who holds each share class. Any change to how units are issued or recorded should be reviewed with the fund’s counsel and, where needed, its regulator.
Who calculates the NAV of a tokenized fund on T-Suite Funds?
The fund administrator. It prepares the NAV pack, and T-Suite validates it against the register and the fund’s tolerance, routes it for approval and publishes the approved NAV on-chain with the pack’s SHA-256 hash. Libertum does not calculate or approve NAVs.
Can investors pay for fund units in stablecoins?
Where the fund allows it. Each fund or share class sets its payment details: a bank account or a USDC address. USD classes can also be paid from the investor’s USDC custodian balance after two-factor verification. A payment is marked paid only when the exact amount arrives.
Can tokenized fund units be traded freely?
No. Share-class tokens are permissioned, so only eligible investors can hold them and every transfer must pass the fund’s rules. For a fund-managed offering, investors subscribe and redeem through the fund at the next NAV, and P2P listings for that offering are refused.
Does T-Suite Funds work for closed-ended and private credit funds?
Yes. Closed-ended funds get commitments, closings, capital calls with branded notices, payments and distributions, with ILPA-style capital accounts for each investor. Redemption gates and lock-ups are available for open-ended funds.
Is Libertum the transfer agent of funds on the platform?
No. The fund administrator remains the NAV calculation agent and the transfer agent. Libertum provides software and is not the administrator, transfer agent, manager or issuer of any fund. Each administrator and fund needs its own authorisations where it operates.
Administering funds?
See how T-Suite Funds publishes your NAV on-chain, runs dealing and reconciles three ways, under your brand.