SPV Structure

How BlockBank tokenizes assets through Special Purpose Vehicles

SPV Creation Process

1

Asset Batch Identification

Group assets (mining equipment, real estate) into batches for tokenization

  • •Mining: ASICs, containers, electricity contracts, BTC wallets
  • •Real Estate: Villa, apartment, warehouse, commercial property
2

SPV Incorporation

Incorporate SPV in RAK ICC (Ras Al Khaimah, UAE)

  • •RAK ICC free zone company registration
  • •Minimal capital requirements
  • •Fast incorporation (1-2 weeks)
  • •100% foreign ownership allowed
3

Asset Transfer to SPV

Transfer ownership of physical assets to the SPV

  • •Legal title transfer documents
  • •Registration with relevant authorities
  • •Update of ownership records
  • •Asset valuation and documentation
4

Operating Agreement Modification

Update Operating Agreement to include digital representation clause

  • •Clause: '100% of company shares are represented by a unique NFT'
  • •NFT ownership = economic ownership of SPV
  • •Transfer of NFT = transfer of 100% company ownership
  • •Legal recognition of digital certificate

SPV Role & Responsibilities

🏗️

Asset Holder

  • ✓Owns mining equipment (ASICs, containers)
  • ✓Holds electricity contracts
  • ✓Manages BTC mining wallets
  • ✓Owns real estate property
  • ✓Maintains physical asset custody
⚖️

Legal Entity

  • ✓Separate legal person
  • ✓Limited liability protection
  • ✓Can enter into contracts
  • ✓Holds licenses and permits
  • ✓Complies with local regulations
💸

Revenue Generator

  • ✓Receives mining rewards (BTC)
  • ✓Collects rental income (real estate)
  • ✓Manages operational expenses
  • ✓Distributes profits to shareholders
🎫

NFT Backing

  • ✓SPV shares = 100% represented by NFT
  • ✓NFT serves as ownership certificate
  • ✓On-chain registry of ownership
  • ✓Facilitates fractionalization

Legal Compatibility & Framework

✅ Permitted Activities

  • • SPV can hold real estate in UAE (DLD registration)
  • • Tokenization of company shares is permitted
  • • Digital ownership representation via NFT
  • • 100% foreign ownership allowed

⚠️ Limitations

  • • NFT ≠ Cadastral title (property title stays with DLD registry)
  • • NFT represents economic ownership of SPV, not direct property
  • • KYC/AML compliance required for all investors

📋 Compliance Requirements

  • • AML/KYC for all shareholders
  • • Annual audit requirements
  • • Tax reporting (if applicable)
  • • Corporate secretary services

SPV Structure Diagram

Physical Assets
🏭 Mining🏠 Real Estate
↓
RAK ICC SPV
Legal Entity Owner
↓
NFT Master Ownership
100% of SPV Shares