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White Paper

Last Updated: 05/01/2026

AurumRWA Platform White Paper

Executive Summary

AurumRWA is a blockchain-based platform for tokenizing real-world assets (RWAs), enabling fractional ownership and democratized access to traditionally illiquid asset classes. Built on Polygon blockchain with MiCA-ready architecture, the platform provides institutional-grade infrastructure for compliant digital asset management.

1. Introduction

1.1 Problem Statement

Traditional real-world assets such as real estate, art, and commodities face several challenges:

  • High barriers to entry: Minimum investment requirements exclude retail investors
  • Illiquidity: Difficulty in buying/selling fractional ownership
  • Lack of transparency: Opaque pricing and ownership structures
  • Geographic limitations: Cross-border investment complexity
  • Administrative overhead: High costs for asset management and compliance

1.2 Our Solution

AurumRWA leverages blockchain technology to address these challenges through:

  • Tokenization: Converting real-world assets into fungible ERC20 tokens
  • Fractional ownership: Enabling investment from as low as one token
  • On-chain transparency: Immutable record of ownership and transactions
  • Global accessibility: 24/7 trading with instant settlement
  • Automated compliance: Smart contract-enforced regulatory requirements

2. Technology Stack

2.1 Blockchain Infrastructure

Primary Network: Polygon (Matic)

  • Mainnet: Production deployment
  • Amoy Testnet: Development and testing environment

Rationale:

  • Low transaction costs (< $0.01 per transaction)
  • Fast finality (2-second block time)
  • Ethereum compatibility (EVM-compatible)
  • Proven scalability (7,000+ TPS)

2.2 Smart Contract Architecture

RWAAsset Token (ERC20)

  • Fungible token representing fractional asset ownership
  • Compliance-enforced transfers via ComplianceRegistry
  • Pausable for emergency situations
  • Ownable for administrative control

ComplianceRegistry

  • Whitelist management for KYC/AML compliance
  • Role-based access control (Admin, Compliance Officer)
  • Integration with RWAAsset for transfer restrictions

AssetOffering

  • Token purchase mechanism with USDC stablecoin
  • Automated token distribution
  • Price management and supply tracking

2.3 Frontend Technology

  • Framework: Next.js 14 (React)
  • Styling: TailwindCSS + shadcn/ui
  • Web3 Integration: wagmi + viem
  • Wallet Connection: RainbowKit
  • Database: PostgreSQL with Prisma ORM

3. Platform Features

3.1 Asset Tokenization

Process:

  1. Asset Acquisition: Platform acquires real-world asset
  2. Due Diligence: Legal, financial, and technical verification
  3. Valuation: Independent third-party appraisal
  4. Token Creation: Deploy ERC20 contract with defined supply
  5. Offering Launch: Make tokens available for purchase

Asset Classes:

  • Real Estate (residential, commercial, REITs)
  • Art & Collectibles
  • Commodities (precious metals, agricultural products)
  • Debt Instruments (bonds, loans)

3.2 Investor Onboarding

KYC/AML Process:

  1. User connects Web3 wallet
  2. Submits identity documents (passport, ID)
  3. Provides proof of address
  4. Completes investor accreditation (if required)
  5. Admin reviews and approves
  6. Wallet address added to ComplianceRegistry whitelist

Investor Types:

  • Retail Investors (subject to jurisdiction limits)
  • Accredited Investors
  • Qualified Investors (MiCA definition)
  • Institutional Investors

3.3 Dividend Distribution

Mechanism:

  1. Asset generates revenue (rent, sales, appreciation)
  2. Platform deducts configurable fee (default 10%)
  3. Remaining amount distributed proportionally to token holders
  4. USDC sent directly to investor wallets via smart contract
  5. Transaction recorded on-chain for transparency

Frequency: Varies by asset (quarterly, annually, or event-based)

3.4 Secondary Market (Planned)

Features:

  1. Peer-to-peer token trading
  2. Order book or AMM-based pricing
  3. Instant settlement
  4. Compliance-enforced transfers (whitelist check)

Benefits:

  • Liquidity for investors
  • Price discovery mechanism
  • Exit strategy without asset liquidation

4. Regulatory Compliance

4.1 MiCA Framework

The Markets in Crypto-Assets Regulation (MiCA) is the EU's comprehensive regulatory framework for crypto-assets. AurumRWA is designed with MiCA-ready architecture:

Asset-Referenced Tokens (ARTs):

  • Tokens backed by real-world assets may qualify as ARTs
  • Requires authorization as ART issuer
  • Reserve requirements and transparency obligations

E-Money Tokens (EMTs):

  • USDC stablecoin used for transactions
  • Issued by regulated entities (Circle)

Utility Tokens:

  • Platform governance tokens (future implementation)

Compliance Measures:

  • White paper publication (this document)
  • Investor protection disclosures
  • Complaint handling procedures
  • Operational resilience requirements
  • Cybersecurity standards

4.2 Securities Law Considerations

Howey Test (US): Tokens may be classified as securities if they meet the Howey Test criteria:

  1. ✅ Investment of money
  2. ✅ Common enterprise
  3. ✅ Expectation of profits
  4. ✅ Efforts of others

Implication: Tokens distributing dividends are likely securities and require:

  • SEC registration or exemption (Regulation D, Regulation A+)
  • Investor accreditation verification
  • Ongoing reporting obligations

Jurisdictional Approach:

  • EU: MiCA compliance + national securities laws
  • US: SEC registration or exemption
  • Other: Jurisdiction-specific compliance

4.3 AML/KYC Requirements

Know Your Customer (KYC):

  • Identity verification (government-issued ID)
  • Address verification (utility bill, bank statement)
  • Politically Exposed Person (PEP) screening
  • Sanctions list checking

Anti-Money Laundering (AML):

  • Transaction monitoring
  • Suspicious activity reporting
  • Record retention (5 years minimum)
  • Risk-based approach

Implementation:

  • Third-party KYC provider integration (planned)
  • On-chain whitelist enforcement
  • Automated compliance checks

5. Economic Model

5.1 Platform Revenue

Fee Structure:

  • Dividend Distribution Fee: 10% (configurable)
  • Transaction Fee: 0.5% on secondary market trades (planned)
  • Asset Management Fee: 1-2% annually (varies by asset)

Fee Allocation:

  • Operational costs (infrastructure, compliance, legal)
  • Platform development and maintenance
  • Marketing and user acquisition
  • Reserve fund for contingencies

5.2 Token Economics

Supply Model:

  • Fixed supply per asset (determined by valuation and price per token)
  • No inflation or deflation mechanisms
  • 1 token = 1/totalSupply fractional ownership

Pricing:

  • Initial offering: Fixed price based on asset valuation
  • Secondary market: Market-determined price
  • NAV (Net Asset Value) published quarterly

Example:

  • Asset: Tuscan Vineyard Estate
  • Valuation: $3,200,000
  • Price per Token: $100
  • Total Supply: 32,000 tokens
  • Minimum Investment: $100 (1 token)

5.3 Dividend Yield

Calculation: Annual Dividend Yield (APY) = (Annual Dividends / Token Price) × 100

Example:

  • Annual Revenue: $500,000
  • Platform Fee (10%): $50,000
  • Distributed to Investors: $450,000
  • Per Token (32,000 supply): $14.06
  • APY (at $100/token): 14.06%

Disclaimer: Past performance does not indicate future results. Dividends are not guaranteed.

6. Risk Factors

6.1 Market Risks

  • Asset Value Fluctuation: Real-world asset values may decrease
  • Illiquidity: Limited secondary market may prevent timely exit
  • Economic Downturn: Recession may impact asset performance
  • Currency Risk: Exchange rate fluctuations (for non-USD assets)

6.2 Regulatory Risks

  • Regulatory Change: New laws may impact platform operations
  • Compliance Costs: Increasing regulatory burden
  • Jurisdictional Restrictions: Access limitations by geography
  • Securities Classification: Tokens may be deemed securities

6.3 Technology Risks

  • Smart Contract Bugs: Code vulnerabilities may lead to loss of funds
  • Blockchain Congestion: Network issues may delay transactions
  • Wallet Security: User error or hacking may result in token loss
  • Oracle Failure: External data feeds may provide incorrect information

6.4 Operational Risks

  • Platform Downtime: Technical issues may prevent access
  • Custodial Risk: Asset manager failure or fraud
  • Key Person Risk: Dependence on core team members
  • Cybersecurity: Hacking or data breaches

Mitigation Strategies:

  • Smart contract audits by reputable firms
  • Insurance coverage for custodial assets
  • Multi-signature wallet controls
  • Regular security assessments
  • Diversified asset portfolio

7. Governance

7.1 Current Model

Centralized Governance (Initial Phase):

  • Platform operator makes key decisions
  • Admin controls smart contracts
  • Compliance officer manages whitelist
  • Asset managers handle physical assets

Rationale: Regulatory compliance and operational efficiency during early stage

7.2 Future Decentralization (Planned)

DAO Governance:

  • Governance token distribution to stakeholders
  • On-chain voting for platform decisions
  • Treasury management by token holders
  • Proposal submission and voting mechanisms

Governance Scope:

  • Platform fee adjustments
  • New asset class additions
  • Protocol upgrades
  • Treasury allocation

Timeline: Subject to regulatory clarity and platform maturity

8. Roadmap

Q1 2026 (Current)

  • ✅ Platform launch on Polygon Amoy testnet
  • ✅ Core features: Asset tokenization, KYC, dividends
  • ✅ Admin panel for asset and user management
  • 🔄 MiCA compliance documentation
  • 🔄 Security audit (smart contracts)

Q2 2026

  • 🔜 Mainnet deployment
  • 🔜 Third-party KYC provider integration
  • 🔜 First asset offering (real estate)
  • 🔜 Mobile app (iOS/Android)

Q3 2026

  • 🔜 Secondary market launch
  • 🔜 Additional asset classes (art, commodities)
  • 🔜 Institutional investor portal
  • 🔜 API for third-party integrations

Q4 2026

  • 🔜 Cross-chain expansion (Ethereum, Arbitrum)
  • 🔜 Governance token launch
  • 🔜 DAO formation
  • 🔜 International expansion (US, Asia)

2027 and Beyond

  • 🔜 DeFi integrations (lending, staking)
  • 🔜 Synthetic assets and derivatives
  • 🔜 Insurance products
  • 🔜 White-label solutions for asset managers

9. Team & Advisors

Core Team

  • CEO: Platform vision and strategy
  • CTO: Technical architecture and development
  • CFO: Financial management and compliance
  • Chief Compliance Officer: Regulatory adherence
  • Head of Asset Management: Asset acquisition and management

Advisors

  • Legal: Securities law and regulatory compliance
  • Technical: Blockchain security and scalability
  • Financial: Asset valuation and risk management

10. Conclusion

AurumRWA represents the future of asset ownership—democratized, transparent, and globally accessible. By combining blockchain technology with regulatory compliance, we enable investors of all sizes to participate in traditionally exclusive asset classes while maintaining the highest standards of security and legal adherence.

Investment in tokenized assets carries risks. This white paper does not constitute investment advice. Consult with financial and legal professionals before investing.

Document Version: 1.0
Last Updated: January 2026
Contact: legal@aurumrwa.com
Website: https://aurumrwa.com

Regulatory Disclaimer: This white paper is provided for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. Any such offer or solicitation will be made only through official offering documents in compliance with applicable laws.