Machinery
Industrial machinery with a resale market.
What this instrument is
Read off the asset template the product uses to structure one of these, not written separately for the website.
| Fungibility | fungible |
|---|---|
| Income | Produces periodic income, so a distribution cycle applies. |
| Maturity | Open-ended, with no scheduled end. |
| Physical custody | Required — something tangible must be held by an identified party. |
| Proof of reserve | Required on a recurring basis, because the token claims to represent a specific custodied thing. |
| Independent valuation | Required — there is no continuous market price to rely on. |
Token model
Derived from what the instrument is — whether it is fungible, whether it is fractionalised, whether transfers depend on the recipient, whether it accrues rather than pays, and whether units come in batches.
ERC-3643. Transfers depend on who the recipient is. ERC-3643 pairs the token with an identity registry and a compliance module, so an ineligible transfer is rejected by the contract itself rather than only by policy.
Alternatives considered
| Standard | When it is the better choice |
|---|---|
| ERC-7943 | A newer permissioned standard. Consider it where its tooling and audit coverage are sufficient for your deployment; verify support on your target chain first. |
| ERC-4626 | If the instrument is a yield-bearing vault, wrap the restricted token rather than replacing it. |
What must exist before it can be offered
Readiness is derived from what has actually been recorded against the asset. These are the requirements this class carries.
Parties
- Asset owner — required.
- Issuer — required.
- Legal counsel — required.
- Custodian — required.
- Valuation provider — required.
- Insurer — required.
- Auditor — recommended.
- Servicer — recommended.
Documents
- Ownership evidence — required and must be current.
- Legal opinion — required and must be current.
- Offering memorandum — required and must be current.
- Subscription agreement — required and must be current.
- Investor disclosures — required and must be current.
- Title — required and must be current.
- Appraisal — required and must be current.
- Insurance — required and must be current.
- Custody agreement — required and must be current.
- Inspection report — required and must be current.
- Audit — recommended.
- Proof-of-reserve report — recommended.
Legal structures commonly used
Presented as options for counsel to choose between, never applied automatically: Special purpose vehicle, Company shares, Beneficial interest, Trust, Direct ownership.
What is distinctive about physical & luxury assets
The shape of the claim
The asset has a location and a condition, and a chain cannot observe either. Every guarantee reduces to somebody trustworthy asserting that it exists, is as described, and is not pledged elsewhere.
Servicing burden
Maintenance and insurance, both of which cost money that reduces holder returns. Deferred maintenance is how value is quietly lost.
Principal risk
Concentration and casualty. One object, one incident, and usually no diversification within the vehicle.
Liquidity, realistically
Thin. The buyer base for a fractional interest in one specific object is small and specialised.
Structure a machinery.
Launch Studio will not let this asset reach an offering without the parties and documents listed above.