Institutional Secondary Market

Liquidity built in. Trade tokens between whitelisted investors.

Empowering issuers and investors with a secure, compliant environment for fractional asset exchange. Bridge the gap between private placement and public liquidity.

Why Secondary Markets Matter

Secondary markets for security tokens are transformative, providing investors with the flexibility to enter or exit positions before maturity. This liquidity potential makes fractionalized assets more attractive, as investors are no longer locked into long-term hold periods typically associated with private equity or real estate.

For issuers, secondary markets increase the marketability of their offerings. By providing a clear path to liquidity, they can attract a broader pool of capital and potentially command a liquidity premium on the assets they tokenize.

How FRACTIONED's Secondary Market Works

Whitelisted Trading Only

Only investors who have passed KYC/KYB and been approved for a specific token can trade it. This isn’t a public exchange — it’s a controlled marketplace where every participant is verified. Smart contracts enforce the whitelist at the protocol level, meaning non-whitelisted wallets physically cannot receive tokens.

Issuer-Defined Rules

The issuer sets the rules, and smart contracts enforce them automatically:

Holding periods (e.g., 6-12 month lock-up)

Daily/Weekly Transfer limits

Maximum holders compliance

Jurisdiction restrictions

Accreditation requirements

Optional Issuer approval gate

Order Book Mechanism

Sellers list their tokens at an asking price. Buyers browse available listings and place orders. When a buyer and seller match:

Smart contract verifies both parties are whitelisted
Restriction checks executed automatically
Payment settled via escrow or on-chain
Token ownership transfers atomically with cap table update

Price Discovery

The secondary market creates real price discovery for tokenised assets. Instead of relying on annual valuations or issuer-set prices, the market determines what tokens are worth based on supply, demand, and investor sentiment. This benefits everyone: investors get fair pricing, issuers see demand signals, and regulators get transparent data.

Settlement

FRACTIONED supports two settlement models:

Delivery vs Payment (DvP) — Crypto

Token and payment settle atomically on-chain. Smart contract holds both in escrow until swap executes in a single transaction. No counterparty risk.

Escrow Settlement — Fiat

Buyer funds held in escrow. When confirmed, token transfers and funds release simultaneously. Settlement typically completes within 1 business day.

Protocol Standard

ERC-3643 and Compliant Transfers

We utilize the ERC-3643 standard (T-REX) to manage compliant token transfers. This institutional-grade standard allows for “permissioned” tokens where every transfer is automatically checked against a decentralized identity system (ONCHAINID). Transfers only succeed if both the sender and receiver satisfy the specific eligibility criteria set by the issuer.

This technical framework ensures that compliance isn't just a manual check at onboarding, but an immutable property of the asset throughout its entire lifecycle on the secondary market.

Service Availability

SaaS

A ready-to-use, cloud-hosted marketplace where you can list your tokens alongside other premium assets.

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Whitelabel

A fully branded, standalone secondary market portal designed exclusively for your ecosystem and investors.

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API

Integrate our robust order book and settlement engine directly into your existing platform or mobile app.

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