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Rime uses distributed ledger technology (DLT) to manage the registry of fund share ownership. When you buy fund shares through Rime, your ownership is recorded on a blockchain rather than in traditional custody bank systems. This approach offers three key advantages: transparent auditing, 24/7 transferability, and the foundation for instant settlement. Traditional fund share registries are maintained by custody banks and transfer agents using databases built decades ago. These systems operate during business hours, process updates in batches, and require manual reconciliation between multiple parties. DLT provides a modern alternative – a single, shared registry that updates instantly and can be verified by all participants simultaneously. What This Means:
  • Ownership is transparently recorded on a blockchain
  • Every transaction is permanently logged and verifiable
  • Updates happen in real-time, not batch processing windows
  • All parties see the same information simultaneously

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Why This Matters

Tokenized assets provide infrastructure advantages that improve operations for everyone: For distributors: Reduced operational costs (no transfer agent fees per transaction), automatic audit trails, real-time reporting and 24/7/365 operations. For investors: Real-time portfolio visibility, potential for self-custody, faster settlement and transparent verification of holdings. For regulators: Real-time oversight capabilities, complete transaction history, automatic compliance enforcement and reduced risk of registry errors. Tokenization modernizes fund share infrastructure to match the expectations and capabilities of digital-first financial services.

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Transparent Auditing

Every transaction on the blockchain creates a permanent, tamper-proof record. Your compliance and finance teams can verify the complete history of any fund share:
  • Who owned it and when: Complete ownership chain from issuance to current holder
  • Every transfer: Amount, timestamp, sender, recipient for every transaction
  • Real-time verification: Check current holdings instantly without requesting reports
  • Regulatory oversight: Regulators can audit fund operations in real-time
This eliminates the reconciliation work required with traditional registries. There’s one source of truth, visible to all authorized parties, updated the moment transactions occur. For your operations this means:
  • Monthly reconciliations become unnecessary since the blockchain is always reconciled
  • Audit trails are automatic and complete
  • Regulatory reporting can pull directly from blockchain records
  • Disputes about ownership or transaction history are resolved instantly with cryptographic proof

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Compliance

Rime’s tokenization process enforces compliance at the registry level automatically. Before any share transfer occurs, we utilize DLT to verify that:
  • The recipient is on your approved customer list
  • Required compliance checks have been completed
  • Regulatory restrictions are satisfied
  • Payments have been verified
Unauthorized transfers are impossible, not just prohibited. The registry itself enforces your compliance rules.

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No Cryptocurrency Exposure

Using blockchain for the registry does not mean cryptocurrency exposure. Your customers invest in regulated fund shares that hold traditional assets (private market funds, real estate, infrastructure). The blockchain is simply the technology managing the ownership registry – like a database, but with better auditability and 24/7 availability. Rime’s funds have no exposure to bitcoin, ether, or other crypto assets.