SIF – fund managers

Fund managers issue legally binding digital tokens (security tokens) rep-

resenting fractions of their funds to some or all of their investors. Fund

managers still maintain the option to raise and operate part of their fund

through traditional methods, and use of the SIF for part of the fund does

not preclude or alter the process for the rest of the fund. Furthermore,

tokenization enables fund managers to provide regulators and investors with

proofs of investment balance of record (IBOR) even if the overall holdings

are confidential and hidden from the public. This capability is particularly

germane to exchanges and money funds, which may hold a diversified class

of securities backing investor deposits to maintain a stable Net Asset Value

and guaranteed liquidity.