Technical Whitepaper v1.0

RealBlocks.AI

Building a Better Alternative for Global Distribution of Alternative Investments

Blockchain InfrastructureAI-PoweredEnterprise Grade

Executive Summary

RealBlocks.AI is revolutionizing the alternative investment industry through a Straight Through Processing (STP) platform that combines blockchain tokenization, automated compliance, and artificial intelligence to deliver unprecedented efficiency and accessibility.

$77B+

Platform Assets Under Management

1000+

Investors Onboarded

90%

Operational Cost Reduction

10x

Faster Time to Market

Mission

To democratize access to alternative investments by providing institutional-grade infrastructure that reduces costs, accelerates distribution, and ensures regulatory compliance through innovative technology.

Key Innovation Pillars

Multi-chain tokenization with ERC-1400 and ERC-3643 (T-REX) security token standards
Hedera Hashgraph integration for enterprise-grade tokenization with sustainability
AI-powered investor onboarding and compliance automation
Global distribution network with multi-jurisdictional support
Secondary market infrastructure for enhanced liquidity

Company History

RealBlocks was founded with a vision to transform the alternative investment landscape by leveraging cutting-edge technology to solve decades-old industry challenges.

Key Milestones

Platform Launch

Launched the first version of RealBlocks SaaS platform, enabling fund managers to digitize their distribution process

HSBC Partnership

Strategic partnership with HSBC Ventures to expand global distribution footprint and deliver full range of alternative strategies worldwide

LaSalle Success Story

Enabled LaSalle Investment Management to exceed sales KPI by 1000% and cut client onboarding costs by 90%

Accuidity - SpaceX Fund

Accelerated time to market by 10x, raised $24M for SpaceX fund in just 2 weeks with uniformly positive LP feedback

$77B Platform Assets

Reached major milestone with over $77 billion in assets under management across the platform

1000+

Investors Onboarded

Fortune 500

Enterprise Clients

Global

Multi-Jurisdictional

Industry Challenges

The traditional alternative investment industry faces significant operational inefficiencies that limit growth, increase costs, and restrict investor access.

High Operational Costs

Manual processes for investor onboarding, document management, and compliance verification consume significant resources, increasing costs by up to 10x compared to automated solutions.

Slow Time to Market

Traditional fund launches can take 6-12 months from inception to investor access, severely limiting market opportunities and competitive advantage.

Limited Liquidity

Lack of secondary market infrastructure locks investor capital for extended periods, reducing appeal and limiting portfolio flexibility.

Jurisdictional Complexity

Managing compliance across multiple jurisdictions requires specialized knowledge and creates barriers to global distribution.

The $100 Trillion Opportunity

Global alternative assets are projected to reach $100 trillion by 2030. Yet, operational inefficiencies and limited access prevent the majority of investors from participating in this growth. RealBlocks.AI addresses these fundamental challenges through technology.

Technology Platform

RealBlocks.AI delivers a comprehensive Straight Through Processing (STP) platform that automates the entire alternative investment lifecycle from fund creation to investor exit.

Blockchain Tokenization

Convert real-world assets into compliant security tokens using ERC-1400 standard, enabling fractional ownership, automated compliance, and global transferability.

ERC-1400Smart ContractsFractional Ownership

AI-Powered Automation

Intelligent automation for KYC/AML verification, document processing, investor matching, and compliance monitoring using advanced machine learning models.

GPT-4Document AIPattern Recognition

Global Distribution Network

Multi-jurisdictional compliance engine supporting SEC, FCA, MAS, and other regulatory frameworks for seamless global investor access.

SEC CompliantFCA ApprovedMulti-Jurisdiction

Secondary Market Infrastructure

Built-in marketplace for token trading with automated settlement, liquidity pools, and price discovery mechanisms.

Order MatchingInstant SettlementPrice Oracle

Smart Contract Architecture

RealBlocks.AI employs a modular smart contract architecture built on Ethereum, Hedera Hashgraph, and compatible EVM chains, ensuring security, scalability, and regulatory compliance through standards like ERC-1400 and ERC-3643.

Ethereum & EVM

ERC-1400, ERC-3643 token standards for security tokens

Hedera Hashgraph

Asset Tokenization Studio with regulatory compliance

Multi-Chain

Polygon, Arbitrum, Optimism support

Why Hedera for Asset Tokenization?

Hedera's Asset Tokenization Studio provides enterprise-grade infrastructure specifically designed for compliant security tokens, offering unique advantages for institutional adoption.

Low & Predictable Fees: $0.0001 per transaction vs. Ethereum's volatile gas fees

Fast Finality: 3-5 second transaction finality with aBFT consensus

Carbon Negative: Most sustainable public ledger, critical for ESG compliance

Enterprise Governance: Governed by leading organizations (Google, IBM, Boeing)

Native Compliance: Built-in KYC/AML via Hedera Token Service (HTS)

Full Asset Lifecycle: Issuance, transfer, compliance, and settlement on-chain

Contract Interaction Flow

User / Investor

Registry Contract

Compliance Module

Asset Token (ERC-1400)

Trading Contract

Distribution Contract

Core Smart Contracts

1. Asset Tokenization Contract (ERC-1400)

Security token standard with built-in compliance

Implements the ERC-1400 security token standard, providing partitioned token balances, document management, and controller operations for regulatory compliance.

Key Functions:

function issueByPartition(bytes32 partition, address to, uint256 value)

function transferByPartition(bytes32 partition, address to, uint256 value)

function redeemByPartition(bytes32 partition, uint256 value)

function canTransfer(address to, uint256 value) returns (bool, bytes32)

Features:

Partitioned balances for different investor classes (accredited, institutional, retail)
Transfer restrictions based on compliance rules
Document management with IPFS integration
Controller operations for forced transfers (legal compliance)

2. Investor Registry Contract

KYC/AML verification and investor management

Manages investor identities, KYC/AML status, accreditation levels, and jurisdiction-specific compliance requirements.

Key Functions:

function addInvestor(address investor, uint8 accreditationLevel, bytes32 jurisdiction)

function updateKYCStatus(address investor, bool verified, uint256 expiryDate)

function isEligible(address investor, bytes32 assetId) returns (bool)

function getInvestorDetails(address investor) returns (InvestorData)

Stored Data:

KYC verification status and expiry dates
Accreditation level (retail, accredited, institutional)
Jurisdiction and regulatory region
Investment limits and restrictions

3. Compliance Module Contract

Automated regulatory compliance engine

Enforces transfer restrictions, lock-up periods, investment caps, and jurisdiction-specific regulations automatically on every transaction.

Key Functions:

function validateTransfer(address from, address to, uint256 amount) returns (bool)

function setLockupPeriod(bytes32 assetId, uint256 duration)

function setInvestmentCap(bytes32 assetId, uint256 maxInvestment)

function checkJurisdictionCompliance(address investor, bytes32 assetId) returns (bool)

Compliance Rules:

Lock-up periods for early investors and team members
Maximum investment caps per investor class
Whitelisted/blacklisted addresses and jurisdictions
Trading hours and settlement windows

4. Secondary Market Trading Contract

Decentralized order matching and settlement

Enables peer-to-peer trading of tokenized assets with automated price discovery, order matching, and instant settlement.

Key Functions:

function createBuyOrder(bytes32 assetId, uint256 amount, uint256 price)

function createSellOrder(bytes32 assetId, uint256 amount, uint256 price)

function matchOrders() returns (uint256[] matchedOrders)

function executeSettlement(uint256 orderId)

Market Features:

Limit orders with price and time priority
Automated order matching algorithm
Atomic swap settlement (DvP - Delivery vs Payment)
Price oracle integration for fair market valuation

5. Dividend Distribution Contract

Automated cashflow distribution to token holders

Manages dividend payments, rental income distribution, and profit sharing with automatic pro-rata calculations based on token ownership.

Key Functions:

function distributeDividends(bytes32 assetId, uint256 totalAmount)

function claimDividends(bytes32 assetId)

function getDividendBalance(address investor, bytes32 assetId) returns (uint256)

function setDistributionSchedule(bytes32 assetId, uint256 frequency)

Distribution Features:

Automatic pro-rata calculation based on token holdings
Support for multiple currencies (ETH, USDC, USDT)
Scheduled distributions (monthly, quarterly, annual)
Unclaimed dividend tracking and reclamation

4. ERC-3643 T-REX Protocol

Token for Regulated Exchanges standard

The ERC-3643 standard (T-REX - Token for Regulated EXchanges) provides a comprehensive framework for compliant security token issuance and management with on-chain identity verification.

Key Functions:

function setIdentityRegistry(address _identityRegistry)

function setCompliance(address _compliance)

function forcedTransfer(address from, address to, uint256 amount)

function batchForcedTransfer(address[] from, address[] to, uint256[] amounts)

T-REX Components:

Identity Registry - On-chain investor identity verification with claims
Compliance Module - Modular compliance rules for different jurisdictions
Trusted Issuers Registry - Trusted identity claim issuers (KYC providers)
Claim Topics Registry - Defines required claims for token transfers

Hedera Integration: RealBlocks leverages Hedera's Asset Tokenization Studio which natively supports ERC-3643 compliance framework for permissioned token transfers with built-in regulatory compliance.

Hedera SDK Deployment

Deploy security tokens on Hedera using the Hedera SDK with support for both Hedera Token Service (HTS) and Hedera EVM smart contracts.

// Initialize Hedera Client

import { Client, TokenCreateTransaction } from '@hashgraph/sdk'

const client = Client.forTestnet()

.setOperator(operatorId, operatorKey)

// Deploy ERC-3643 Token

const tokenCreate = await new TokenCreateTransaction()

.setTokenName("Manhattan Office Token")

.setTokenSymbol("MOFA")

.setDecimals(2)

.setInitialSupply(1000000)

.setTreasuryAccountId(treasuryId)

.setSupplyType(TokenSupplyType.FINITE)

.setMaxSupply(10000000)

.setKycKey(kycKey) // Built-in KYC

.setFreezeKey(freezeKey) // Compliance freeze

.execute(client)

const receipt = await tokenCreate.getReceipt(client)

const tokenId = receipt.tokenId

console.log(`Token deployed: ${tokenId}`)

Hedera Token Service provides native compliance features without complex smart contracts, reducing deployment costs to ~$0.10 and enabling instant KYC verification on-chain.

Payment Rails & Settlement

RealBlocks supports multiple payment methods for asset tokenization with automated settlement through smart contract escrow.

Primary Market (Tokenization)

Fiat (USD): Wire transfer / ACH for institutional clients ($1M+)
USDC: Instant settlement for accredited investors ($10K+)
Manual token minting after payment confirmation & KYC

Secondary Market (Trading)

USDC: Atomic swaps with smart contract escrow
USDT: High liquidity option for crypto-native traders
Automated compliance checks before settlement

USDC on Hedera Benefits

• Instant settlement: 3-5 second finality vs 1-3 days for wire transfers
• Low fees: $0.0001 network cost vs $25-50 for wire transfers
• 24/7 availability: No banking hours limitations
• Transparency: All transactions visible on blockchain explorer
• Regulatory compliance: Circle USDC is regulated and audited

// Smart Contract Escrow with USDC

function purchaseWithUSDC(uint256 tokenAmount) external {

uint256 totalCost = (tokenAmount * pricePerToken) + platformFee;

// Transfer USDC to escrow

USDC.transferFrom(msg.sender, escrowAddress, totalCost);

// Check KYC/AML compliance

require(identityRegistry.isVerified(msg.sender));

// Transfer security tokens

_transfer(treasury, msg.sender, tokenAmount);

// Release payment to seller

USDC.transfer(seller, totalCost - platformFee);

}

Security & Auditing

All smart contracts undergo rigorous security audits by leading firms including CertiK, OpenZeppelin, and Trail of Bits. Contracts implement industry best practices including reentrancy guards, access controls, pausability, and upgrade mechanisms via proxy patterns.

Multi-sig GovernanceTimelock ControllersEmergency PauseUpgradeable Proxies

AI Assistant Capabilities

The RealBlocks.AI Assistant leverages GPT-4 and custom machine learning models to provide intelligent automation across the entire investment lifecycle.

Automated Asset Tokenization

AI analyzes asset documentation and automatically generates optimal tokenization parameters including token supply, partition structure, and compliance rules.

Key Features:

Document extraction and analysis (legal docs, financial statements, appraisals)
Automatic valuation and token supply calculation
Smart contract parameter optimization
Risk assessment and recommended structure

Example Workflow:

1. Upload property deed, appraisal, and rental agreements

2. AI extracts key data: $5M valuation, $300K annual rent, commercial property

3. Recommends: 5,000,000 tokens at $1 each, 6% annual yield, 3-year lockup

4. Generates smart contract with compliance rules for commercial RE

Intelligent KYC/AML Processing

Machine learning models verify investor identities, detect fraud patterns, and ensure compliance with global AML regulations in real-time.

Capabilities:

Automated document verification (passport, driver license, utility bills)
Facial recognition and liveness detection
Sanctions screening against global watchlists (OFAC, UN, EU)
PEP (Politically Exposed Person) detection
Risk scoring based on behavioral patterns

95% Accuracy2-minute Processing24/7 Availability

Smart Investment Matching

AI recommendation engine matches investors with suitable assets based on risk tolerance, investment goals, and portfolio composition.

Matching Criteria:

Risk profile alignment (conservative, moderate, aggressive)
Investment horizon matching (short, medium, long-term)
Portfolio diversification recommendations
Geographic and sector exposure balancing
Liquidity needs assessment

Automated Compliance Monitoring

Continuous monitoring of transactions, investor activity, and regulatory changes to ensure ongoing compliance across all jurisdictions.

Monitoring Functions:

Transaction pattern analysis for suspicious activity
Regulatory change detection and impact assessment
Automatic SAR (Suspicious Activity Report) generation
Real-time alerts for compliance violations

Document Generation & Legal Automation

Automatically generates offering memorandums, subscription agreements, and compliance documentation tailored to specific jurisdictions.

Generated Documents:

Private Placement Memorandum (PPM)
Subscription Agreements with jurisdiction-specific clauses
Investor Questionnaires (accreditation verification)
Operating Agreements and Governance Documents
Regulatory Filings (Form D, Blue Sky notices)

Conversational Assistant Interface

Natural language interface allows users to interact with the platform using plain English, executing complex operations through conversation.

Example Conversations:

User: "Show me real estate investments with 8%+ yield under $50K"

AI: Searches marketplace, filters by criteria, displays 3 matching properties with detailed metrics

User: "Tokenize my $2M office building in Manhattan"

AI: Requests documents, analyzes property, recommends token structure, generates smart contracts

User: "What's my portfolio return this quarter?"

AI: Calculates performance across all holdings, shows breakdown by asset class, suggests rebalancing

AI Technology Stack

Powered by GPT-4 for natural language understanding, custom TensorFlow models for document analysis, and specialized compliance engines trained on regulatory data from 50+ jurisdictions.

GPT-4TensorFlowPyTorchComputer VisionNLPFraud Detection ML

Security & Compliance

Security and regulatory compliance are foundational to the RealBlocks.AI platform, implemented through multiple layers of protection and continuous monitoring.

Smart Contract Security

Multi-signature governance (3-of-5 threshold)
48-hour timelock for critical changes
Emergency pause functionality
Upgradeable via transparent proxy pattern

Data Protection

AES-256 encryption for data at rest
TLS 1.3 for data in transit
Zero-knowledge proofs for sensitive data
SOC 2 Type II certified infrastructure

Regulatory Compliance

SEC Regulation D & Regulation S
GDPR and CCPA data privacy compliance
MiFID II (EU Markets in Financial Instruments)
MAS (Monetary Authority of Singapore) approved

Third-Party Audits

CertiK smart contract security audit
OpenZeppelin security review
Annual penetration testing
Bug bounty program ($500K pool)

Platform Economics & Fee Structure

RealBlocks.AI operates on a transparent, multi-tiered fee structure designed to align incentives between the platform, issuers, and investors. Our integration with Hedera enables industry-leading cost efficiency.

Primary Market

Asset Tokenization

2-5%

One-time fee charged on the total asset value at tokenization. Tiered pricing favors larger deals.

Under $5M5%

$5M - $50M3%

Over $50M2%

Includes smart contract deployment, legal documentation, and compliance setup

Secondary Market

Trading Commissions

0.5-2%

Per-transaction fee on all secondary market trades. Split between buyer and seller.

Retail Trades2%

Institutional1%

High Volume0.5%

No gas fees for investors - platform absorbs Hedera network costs ($0.0001/tx)

AUM Fees

Asset Management

0.5-1%

Annual fee on assets under management. Provides predictable recurring revenue.

Under $100M AUM1%

$100M - $1B0.75%

Over $1B0.5%

Covers platform maintenance, compliance monitoring, and reporting

Additional Service Fees

KYC/AML Verification (Individual)$50 - $200

Smart Contract Deployment$2,000 - $10,000

Legal Documentation Package$5,000 - $50,000

Security Audit & Compliance$10,000 - $100,000

White Label Licensing (Annual)$100,000+

Custom Integration ServicesCustom Quote

On-Chain Fee Implementation

Platform fees are programmatically enforced in smart contracts, ensuring transparent and automatic collection during tokenization and trading operations.

// ERC-3643 Token with Platform Fees

contract RealBlocksToken is ERC3643 {

address public platformFeeRecipient;

uint256 public tradingFeePercentage = 100; // 1% = 100 basis points

function transfer(address to, uint256 amount) public override returns (bool) {

uint256 fee = (amount * tradingFeePercentage) / 10000;

uint256 netAmount = amount - fee;

_transfer(msg.sender, platformFeeRecipient, fee);

_transfer(msg.sender, to, netAmount);

return true;

}

For Asset Issuers

• 70-90% cost reduction vs traditional capital raising
• No upfront platform fees - pay only on success
• Access to global investor pool
• Automated compliance reduces legal costs

For Investors

• Zero platform fees for account creation
• No hidden charges - transparent pricing
• Lower minimums enable diversification
• Instant liquidity on secondary market

Roadmap

Q1-Q2 2025

Phase 1: Platform Enhancement

Multi-chain deployment (Ethereum, Polygon, Avalanche)
Enhanced AI assistant with voice interface
Mobile app launch (iOS & Android)

Q3-Q4 2025

Phase 2: Market Expansion

APAC region expansion (Singapore, Hong Kong, Japan)
Institutional trading desk with OTC capabilities
Integration with major custodians (Fireblocks, Anchorage)

2026

Phase 3: DeFi Integration

Lending/borrowing against tokenized assets
Automated market makers (AMMs) for RWA tokens
Yield farming strategies for institutional clients

2027+

Phase 4: Global Scale

$500B+ assets under management target
White-label solution for banks and asset managers
Decentralized governance with platform token

Join the Future of Alternative Investments

RealBlocks.AI is building the infrastructure for the next generation of capital markets. Whether you're a fund manager seeking efficient distribution, an investor looking for access to premium assets, or an institution planning digital transformation, we provide the technology to succeed.