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Fund subscriptions on DLT can settle under two models:
  1. Bearer settlement, where the share is sent to an allow-listed wallet.
  2. Registered settlement, where the share is recorded to investor identity in a register.
Both are fully KYC and AML-gated and permissioned, but they differ in how ownership is recorded and controlled.

Settlement Type Comparison

CharacteristicBearer SettlementRegistered Settlement
Ownership TransferImmediate to walletAllocation to identity
Claiming ProcessNone (tokens delivered)Claimed when ready
Regulatory ModelBearer ownershipRegistered ownership
Settlement Speed2-5 minutes2-5 minutes

Bearer Settlement

In a bearer model, the tokenized fund shares are issued directly to an allow-listed customer wallet. The smart contract functions as the statutory register, no off-chain registry or intermediary custody is required. The holder of the private keys controls the asset—similar to physical cash or bearer bonds. How It Works On payment confirmation, Rime mints the tokens to the investor’s pre-approved wallet. The smart contract functions as the statutory register, so the on-chain transaction is the ownership record — no separate off-chain register and no intermediary custody. Key Characteristics
  • Immediate ownership: Tokens appear in investor’s wallet within minutes
  • Flexible custody: Custody over tokenized assets can be with you or directly with the customer
  • Allow-List only: Transfers are restricted to approved addresses
  • On-chain transparency: Balances and transfers are visible on chain and through blockchain explorers. Identities behind wallets remain pseudonymous.
When to Use Bearer Settlement
  • You want to benefit from the speed and compliance benefits of DLT
  • You are able to implement a managed wallet solution
  • You have a investors prioritizing control over their assets in self-custody
  • Jurisdictions where direct ownership aligns with regulatory requirements
Operational Considerations You may require to manage wallets for your investors, or need a complementary interface for your investors to use their wallets with you must manage wallet access. Wallet addresses must be pre-whitelisted through Rime’s compliance framework before receiving tokens.

Registered Settlement (Claimable Shares)

In a registered model, ownership is linked to a customer’s verified legal identity rather than a wallet address. Registered shares maintain a registry linking investor identity to ownership rights. Tokens are not immediately delivered but allocated to the investor’s identity hash. You can later claim tokens to convert them into bearer shares. How It Works When payment confirms, Rime grants an allocation to the investor’s identity (account ID or designated wallet address). The allocation is recorded but not settled as a tokenized asset. Registered shares can always be transitioned to bearer shares at a later time. Key Characteristics
  • Registry-based: Ownership tracked through identity hash, not wallet possession
  • Custodial compatible: Distributor can maintain traditional custody model
  • Deferred claiming: Registerd shares can be converted to tokenized assets at a later time
  • Compliance-first: KYC/AML verification occurs before allocation creation
When to Use Registered Settlement
  • You are still transitioning to an infrastructure that supports wallets
  • Jurisdictions requiring registered share ledgers

Choosing the Right Model

The choice between bearer and registered settlement depends on your operational model and investor base: Choose Bearer Settlement When:
  • You already feature wallets for your investors or your investors can use their wallets with you
  • Regulatory environment accommodates bearer-style ownership
Choose Registered Settlement When:
  • You are yet in the process of supporting wallets and want to minimize custody obligations
  • Regulatory requirements mandate registered share ledgers
  • Investor base prefers traditional custody relationships
Hybrid Approach A hybrid approach is an optimal entry point to get started with tokenized assets swiftly. By starting with settlement to registered shares, you unblock your private market integration from any wallet management. Once you’re ready to feature bearer shares via wallets, you can claim previously registered shares to bearer shares seamlessly.