OnchainTA – Non-Custodial Transfer Agent for Digital Asset Securities

Executive Summary

OnchainTA is one of the first non-custodial transfer agents designed specifically for digital asset securities. Unlike traditional transfer agents or custodial models, OnchainTA does not hold investor assets. Instead, investors retain ownership of their securities in their own wallets, while OnchainTA provides the regulatory, compliance, and operational functions required of a transfer agent.

Through a combination of smart contracts, web3 interfaces, and compliance frameworks, OnchainTA ensures that securities transfers, replacements, corporate actions, and shareholder recordkeeping are executed seamlessly onchain while remaining compliant with U.S. securities regulations.

This innovative approach redefines the transfer agent model by introducing transparency, efficiency, and investor empowerment while preserving the regulatory safeguards expected in capital markets.

Overview

OnchainTA sits at the core of the post-subscription and post-settlement lifecycle for digital asset securities. It delivers three foundational advantages:

1. Non-Custodial Operation – Investors retain control of their assets in their wallets; OnchainTA does not hold securities.
2. Automated Compliance – Transfers, replacements, and corporate actions are executed through smart contracts that ensure SEC compliance.
3. Peer-to-Peer Enablement – Investors can directly trade with each other without intermediaries, while OnchainTA enforces regulatory constraints such as holding periods and whitelist verification.

This model creates a transparent, auditable, and investor-centric framework for the administration of digital asset securities.

Key Capabilities

1. Ownership Tracking & Verification

• Maintains the official master securityholder file using blockchain-based smart contracts.
• Enables issuers, investors, and the public to verify ownership of securities tied to specific wallets.
• Automatically updates capitalization tables as securities are traded.

2. Replacement of Lost Digital Assets

• Provides mandatory replacement services for regulated digital asset securities if investors lose wallet access or private keys.
• Ensures compliance with securities laws requiring replacement, unlike unregulated utility tokens or cryptocurrencies which cannot be recovered.

3. Regulated Transfers & Peer-to-Peer Trading

• Ensures transfers comply with holding periods, accreditation rules, and other securities laws.
• Automates whitelist management: transferees must register and complete KYC/AML before receiving assets.
• Facilitates direct, peer-to-peer trading of securities between verified wallets without intermediaries.

4. Dividend and Distribution Services

• Distributes dividends and other issuer payments using Merkle claims or distribution smart contracts.
• Supports innovative methods such as perk tokens redeemable for stablecoins like USDC.
• Enables issuers to run compliant dividend reinvestment or reward programs.

5. Corporate Actions Management

• Automates processes for stock splits, reverse splits, conversions, and other corporate actions.
• Supports issuer-initiated communications and proxy distributions.
• Provides flexible smart contract-driven tools for evolving issuer needs.

6. Investor Services

• Dashboard for investors to track their holdings and transfers.
• Automated access to account transcripts, ownership verification, and transfer status.
• Compliance-friendly audit logs for inquiries and dispute resolution.

7. Issuer Services

• Real-time capitalization tables accessible on demand.
• Secure, compliant issuance of new securities.
• Administration of issuer-sponsored plans such as DRIPs, DSPPs, and ESPPs.

8. Compliance and Safeguards

• Restricted securities management: enforces legends and prevents unauthorized resale.
• Integrated KYC/AML workflows and OFAC screening for wallet addresses.
• Full audit trail of transfers, corporate actions, and shareholder communications.
• Cybersecurity and two-factor authentication for secure access.

Strategic Value

For Investors

• Asset Security: Non-custodial model ensures investors always control their securities.
• Regulatory Protection: Lost securities are replaced in compliance with law.
• Direct Trading: Peer-to-peer functionality reduces costs and friction.

For Issuers

• Real-Time Transparency: Automated capitalization tables and shareholder records.
• Reduced Overhead: Smart contract-driven compliance reduces reliance on intermediaries.
• Direct Engagement: Corporate actions, dividends, and proxy votes executed seamlessly.

For the Capital Markets

• Innovation within Regulation: A modern transfer agent model fit for digital asset securities.
• Efficiency: Eliminates legacy bottlenecks of clearance and settlement systems.
• Scalability: Supports regulated securities today, while adaptable for evolving digital asset classes.

Conclusion

OnchainTA redefines the role of the transfer agent in the digital era. By combining non-custodial ownership, smart contract automation, and regulatory compliance, it delivers a modern framework for managing digital asset securities.

Investors retain control. Issuers gain transparency. Regulators receive compliance. And markets move closer to a future of direct, efficient, and trustworthy securities administration.

Traditional Transfer Agent vs. OnchainTA