Structuring the $30M Tokenized Bond on Our RWA Rails
Legal Architecture & SPV Framework
Using our Issuer Portal + legal structuring module, the city established:
- A Special Purpose Vehicle (SPV) to hold the $30M debt obligation
- A digital representation of the bond through Tokenized Municipal Bonds (TMBs)
- An issuance structure aligned with Reg D 506(c) for accredited investors and state-level provisions for local residents
Traditional legal documents are mirrored 1:1 with smart-contract parameters in our Asset Digitization & Management Suite.
Bond Terms:
- Total issuance: $30,000,000
- Tenor: 15 years
- Coupon: 4.10% (tax-advantaged)
- Minimum unit size: $100 per token
- Settlement currency: Stablecoins (USDC), auto-converted from ACH/wire/card
This alignment let the city issue a legally compliant municipal bond in tokenized form, without changing the underlying rules - only the rails.
Smart Contracts & Compliance
Corporate Actions Automation
Our RWA smart-contract infrastructure automated:
- Interest (coupon) payments
- Redemptions and maturity events
- Capital account reconciliation
- On-chain audit logs tied to off-chain documentation
Compliance by Design
The token contract embedded rules for:
- KYC/AML
- Accreditation (Reg D 506(c))
- Geographic eligibility for local residents
- Transfer restrictions (hold periods, residency limits, AML events)
Transfers simply cannot execute unless conditions are met - moving compliance from back-office work to pre-trade enforcement.
Institutional-Grade Security & Control
- Fireblocks-powered institutional custody
- Multi-sig admin wallets
- Freeze/unfreeze powers for AML or regulatory events
- Fully audited smart contracts
This met the “possession or control” standard required for securities custody under U.S. frameworks.
Investor Distribution
Local Residents
Residents accessed the bond through the white-label Riverbend Invest app:
- KYC & residency verification in minutes
- Invest as little as $100
- View project milestones and live disclosures
- Receive stablecoin coupon payments automatically
This turned a $30M muni bond into a community-investable asset, not a financial instrument locked behind brokerage walls.
Regional Banks, Family Offices & Institutions
Institutions onboarded via:
- Fireblocks custody
- API-based portfolio integrations
- Automated reporting exports
- Support for Entities, Trusts, LLCs, and SDIRAs
This opened regional institutional demand that usually cannot efficiently access micro and mid-sized muni offerings due to operational friction.
Secondary Market Liquidity via ATS Integration
The $30M TMBs were listed on a partner Alternative Trading System (ATS) integrated with our rails:
- 24/7 trading
- Atomic settlement (TMB ↔ USDC)
- Orderbook restricted to KYC-approved wallets
- Full compliance enforcement at the token level
This produced the city’s first true secondary liquidity environment, something almost nonexistent for traditional muni issues of this size.
Transparent, Real-Time Disclosure
Through the issuer portal, the city published:
- Spend reports and invoices
- Project progress timelines
- Material events
- Quarterly financials
Each disclosure was hashed and timestamped on-chain for tamper-proof auditability.
Investors viewed a live “Where your dollars go” visualization through the mobile and web dashboards, dramatically improving municipal transparency.
Outcomes: How Tokenization Improved a Standard $30M Deal
Measurable Financial Improvements
- 30-40% lower issuance costs
- No traditional underwriter’s discount
- Reduced legal and administrative reconciliation costs
- Automated coupon payments and investor management
- Instantaneous on-chain settlement vs. slow legacy flows
Expanded Investor Base
- 1,200+ retail wallets with $100-$2,500 holdings
- Regional institutions taking larger tickets
- Local community participation increased political support
Liquidity Gains
- Secondary trades executed within 48 hours of issuance
- Small holders could liquidate partial stakes
- Institutions gained same-day adjustability
Operational Efficiency
- No manual cap-table updates
- Automated post-issuance lifecycle
- Instant reporting for auditors and regulators
Trust & Transparency
- Immutable reporting
- On-chain auditability
- Real-time project milestone tracking
We issued a standard municipal bond - but on next-generation infrastructure.
We reduced our costs, broadened access, improved transparency, and created optionality we never had before.
Riverbend’s mayor summarized the outcome
Summary
- Tokenization isn’t “crypto”; it’s upgrading public finance plumbing
- The technology works within existing legal frameworks
- Our rails turn a traditional municipal bond into a modern, programmable financial instrument
- We unlock efficiency for issuers and access for investors