Lympid Tokenization FAQ | Products, Regulation & Infrastructure

Question 1

What is Lympid?

Accepted Answer

Lympid provides Tokenization-as-a-Service for businesses launching investment products linked to real-world assets. Its solution combines product structuring, technology, a white-label platform or API, KYC/AML, payments and investor onboarding. Within its investment-services mandate, Lympid acts as a tied agent of BMCP. Each offer is distributed according to its structure, documentation, permitted markets and investor-eligibility rules.

Question 2

How is a real-world asset tokenized?

Accepted Answer

The process starts with the legal and economic structure of the investment product. A financial instrument defines the investor's rights and exposure to the underlying asset. Those positions are then represented digitally on a blockchain and connected to subscription, payment and recordkeeping processes. Distribution is limited to the channels and investors permitted by the applicable rules and offering documents.

Question 3

Who manages the underlying assets?

Accepted Answer

The issuer or an appointed manager remains responsible for the asset, including maintenance, valuation and periodic reporting. Lympid and its partners provide the technological, regulatory and operational infrastructure agreed for each project.

Question 4

Which assets can be tokenized?

Accepted Answer

Assets may be considered when ownership, provenance, valuation and documentation can be verified and a suitable legal structure is available. Examples include real estate, company shares, private equity, private credit, commodities, classic cars, art, wine, watches and economic rights. Every project is assessed individually before acceptance.

Question 5

What is a white-label platform?

Accepted Answer

A white-label platform is a configurable investment solution presented under the client's brand. It can include an investor interface, KYC/AML, electronic signing, payments, subscriptions, position records and tokenization infrastructure. Depending on the project, it may be provided as a hosted experience or integrated through an API.

Question 6

Are assets and investor funds separate from Lympid?

Accepted Answer

In the ordinary course of an offering, Lympid does not hold underlying assets or investor funds on its balance sheet. Assets belong to the issuer or relevant vehicle, while appointed providers handle payments, custody and settlement. The exact segregation arrangements depend on the legal structure, accounts and regulated providers used for each product.

Question 7

Is an API available for custom integration?

Accepted Answer

Yes. Clients can use Lympid's API to integrate the investment experience and selected platform functions into their own systems. Depending on scope, this may include investor onboarding, KYC/AML, subscriptions, payments and position data while the client retains its own interface and brand.

Question 8

Does the process comply with EU regulation?

Accepted Answer

Compliance depends on the product and cannot be achieved through technology alone. When a tokenized product is a financial instrument, investment services are provided under BMCP's responsibility, with Lympid acting as its tied agent within the MiFID framework. The issuer and offering must also satisfy applicable requirements relating to documentation, product governance, PRIIPs, prospectus rules or exemptions, KYC/AML and investor protection. MiCA does not replace financial-instrument rules.

Question 9

What does an investor acquire in a tokenized offering?

Accepted Answer

The investor acquires the financial instrument described in the offering terms. Depending on the product, it may provide rights to interest, revenue participation, principal repayment or other economic returns. The token digitally represents the position but does not necessarily provide direct co-ownership of the asset. The offering documents define the precise rights, risks and ranking.

Question 10

Who holds or safeguards the underlying asset?

Accepted Answer

The arrangement depends on the asset class and legal structure. The issuer may hold the asset directly or appoint depositaries, storage facilities, managers or specialist providers. The product documentation describes ownership, safeguarding, insurance and the responsibilities of each party.

Question 11

What happens if Lympid stops operating?

Accepted Answer

Lympid provides technology and certain services as a tied agent but is not normally the issuer, owner of the asset or custodian of investor funds. An investor's rights against the issuer do not disappear solely because Lympid stops providing services. Operational continuity, provider replacement and the treatment of records and assets depend on the contracts, issuer and appointed providers for the relevant offer.

Question 12

What risks do tokenized investment products involve?

Accepted Answer

Risks may include partial or total loss of capital, issuer default, illiquidity, valuation uncertainty, operational and technological failures and risks associated with the underlying asset. Investors should review the instrument terms, the Key Information Document when applicable and all other offering documentation before investing.

Question 13

Who decides when the asset is sold and at what price?

Accepted Answer

The issuer, manager or another party identified in the product documentation makes that decision under the stated strategy, investment horizon and valuation procedures. Lympid does not generally determine when an asset is sold and does not guarantee an exit price or timetable. The issuance terms and offering documents contain the relevant rules.

Question 14

How are tokenized investments taxed?

Accepted Answer

Tax treatment depends on the instrument, the investor's tax residence, the issuer's jurisdiction and the type of return. Interest, dividends, capital gains and other payments may be treated differently. Lympid does not provide tax advice, so investors should consult a qualified professional.

Question 15

How are value and performance reported?

Accepted Answer

The issuer or manager supplies the periodic information required by the product documentation. The platform may show positions, payments and information received from those parties, but this does not imply that a real-time market price or liquidity is available.

Question 16

What is Lympid's regulatory status?

Accepted Answer

Lympid Labs, Lda is registered as a tied agent of BMCP GmbH under Section 3(2) of the German Securities Institutions Act (WpIG). For investment services within that mandate, Lympid acts exclusively for and under the responsibility of BMCP. Lympid appears in BaFin's tied-agent register under number 80181928, and BMCP GmbH is supervised by BaFin under ID 10155626. Appointed regulated providers perform functions outside that mandate, including payments, custody and settlement.

Question 17

What fees does Lympid charge?

Accepted Answer

Fees vary with the project's scope, structure and contracted services. A commercial proposal may include setup and structuring charges, a fee based on capital raised and recurring platform or administration fees. The offering documents disclose any fees borne by investors before subscription.

Question 18

When can a position be transferred or sold?

Accepted Answer

A position may be transferred or sold only when the instrument terms, applicable rules, buyer eligibility requirements and an available transfer channel permit it. Tokenization does not guarantee liquidity or a permanent secondary market.

Question 19

When and how does an investor receive payments?

Accepted Answer

Interest, repayments, distributions and exit proceeds are paid under the timetable and conditions specified in the instrument documentation and subject to the availability of funds. Payments use the providers and accounts appointed for the offering. A return or payment date is guaranteed only if the documentation expressly says so.

Question 20

What does it mean to tokenize a financial instrument?

Accepted Answer

It means representing the position and rights created by a financial instrument digitally on a blockchain. Blockchain can facilitate recordkeeping and operations, but the investor's legal rights arise from the instrument documentation rather than the token alone.

Question 21

How long does it take to launch an offering?

Accepted Answer

Timing depends on the asset's complexity, issuing vehicle, jurisdictions, documentation and due-diligence results. Many projects can be prepared within a few weeks after complete information is received, although approvals and external dependencies may extend the process.

Question 22

How are investor payments processed?

Accepted Answer

Payments are routed through the accounts and providers appointed for each offering. The platform may integrate SEPA and SWIFT transfers and other methods supported by regulated providers. The product structure and subscription documents determine the precise payment flow, account holders and refund rules.

Question 23

Who holds the tokens and financial instruments in custody?

Accepted Answer

Appointed providers arrange custody and recordkeeping for each product. Depending on the structure, this may involve securities custodians, technology custody providers and entities responsible for registration or settlement. The offering documentation specifies each entity's role and responsibilities.

Question 24

How can an investor assess the level of risk?

Accepted Answer

The applicable product documents disclose features, risks and performance scenarios. When required, the PRIIPs Key Information Document includes a summary risk indicator. An appropriateness or suitability assessment is performed when required for the service provided, but it does not remove the possibility of loss.

Question 25

Can an investor exit at any time?

Accepted Answer

Not necessarily. The instrument terms determine its duration, redemption windows, transfer restrictions and any secondary channels. Tokenization does not guarantee immediate liquidity.

Question 26

How does Lympid provide investment services?

Accepted Answer

Lympid Labs, Lda acts as a tied agent of BMCP GmbH. Within that mandate, investment services are provided exclusively for and under BMCP's responsibility. Appointed regulated providers perform other functions, including payments, custody and settlement.

Question 27

Which financial instruments can be structured?

Accepted Answer

Depending on the project, Lympid can assess asset-linked notes, profit- or revenue-participation instruments, participating loans, promissory notes and other permitted structures. The appropriate instrument depends on the asset, cash flows, issuer, target investors and distribution jurisdictions.

Question 28

Which businesses can use Lympid's solution?

Accepted Answer

The solution is designed for issuers, asset managers, real-estate developers, private-equity firms, credit originators, investment clubs, fintech companies and physical-asset operators. Every client and project remains subject to due diligence and acceptance.

Question 29

How do secondary transfers work?

Accepted Answer

When the instrument and regulatory framework allow it, transfers may be facilitated through a regulated channel. Buyer eligibility, product restrictions and KYC/AML requirements must be checked before a transfer. A counterparty, price or level of liquidity is not guaranteed.

Question 30

Which payment methods can the platform support?

Accepted Answer

The platform may integrate SEPA and SWIFT transfers and other methods supported by the providers chosen for an offering. Availability depends on factors including currency, country, bank or provider and the product structure.

Question 31

Can Lympid integrate with a client's existing infrastructure?

Accepted Answer

Yes. Clients may choose a hosted experience, white-label platform or API integration. The technical scope depends on the client's systems, desired user experience, regulated functions and providers involved.

Question 32

Which blockchain is used to issue the tokens?

Accepted Answer

The network and token standard are selected for the instrument's requirements, including custody, interoperability, transfer controls and provider compatibility. Blockchain serves as a technology layer and does not by itself alter the instrument's legal nature.

Question 33

Can the tokens be transferred freely?

Accepted Answer

Not necessarily. Tokens representing financial instruments may be restricted to approved investors. Territorial limits, lock-up periods, concentration limits and KYC/AML checks may apply under the issuance terms and relevant regulation.

Question 34

Which documents must an issuer provide?

Accepted Answer

Issuers are normally asked for corporate and financial information, evidence of ownership or rights over the asset, valuations and material contracts. They must also explain the group structure, use of funds, target amount, relevant jurisdictions and intended investors. The final requirements depend on the project and due-diligence findings.

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¿Tiene dudas? Tenemos respuestas

¿Quiere estructurar y lanzar un producto de inversión tokenizado? Complete el formulario y nos pondremos en contacto con usted.

¿Quiere estructurar y lanzar un producto de inversión tokenizado?
Complete el formulario y nos pondremos en contacto con usted.