Phase 2: Asset Structuring and Legal Readiness

Document and validate the valuation of your tokenized asset. A clear, credible valuation builds investor trust, supports pricing logic, and is often a regulatory requirement. This step ensures the asset’s fair market value is properly assessed and recorded – through a third-party provider, or an internal evaluation where permitted.

Set an Asset Valuation Amount

The current estimated value of the asset being tokenized, typically its fair market value as determined by a valuation report or expert opinion. This figure is critical for calculating token supply and defining the price per token.

Note: For example, “The property is valued at $9.8M based on a certified appraisal.”

Did You Evaluate the Asset Yourself?

Record whether the valuation was performed internally by the issuer or by an external party. Independent, third-party valuation carries materially more weight with regulated and institutional investors; self-valuation should be reserved for cases where it is permitted and clearly disclosed.

Select a Valuation Method

Specify the methodology used to determine the asset’s value – it directly affects the credibility and accuracy of the figure. The chosen method should align with industry standards and the nature of the asset.

• Discounted Cash Flow (DCF) – Forecasts future income (e.g. rental income, royalties, business revenue) and discounts it to present value based on risk and time.
• Net Asset Value (NAV) – Total assets minus liabilities. Commonly used in fund structures or balance-sheet-based valuations.
• Market-Based Valuation (Comparables) – Compares the asset to similar assets recently sold or listed to estimate current value.
• Replacement / Reproduction Cost – Estimates the cost to rebuild or replace the asset, often adjusted for depreciation or obsolescence.
• Custom Valuation – Combines multiple methods (e.g. market comps + DCF) to build a balanced, justifiable valuation for complex or illiquid assets.

Important: The choice of method depends on the asset type (real estate, business equity, funds, and so on) and jurisdictional standards. Confirm the approach with qualified valuation and securities counsel.

Indicate the Valuation Provider Name

Identify the licensed valuation firm, appraiser, or expert who conducted the valuation.

Important: For regulated offerings this should be a recognized third party with credentials. The provider’s credibility directly affects investor trust and regulatory acceptance.

Select the Valuation Provider’s Country

Record the country where your valuation provider is based or licensed – select the provider’s country (200+ jurisdictions supported).

Indicate the Valuation Date

The effective date of the valuation – when the asset’s value was assessed. It matters for regulatory documentation, investor disclosures, and ensuring the figure remains relevant.

Important: The valuation should be recent, typically within 6–12 months.

Upload a Valuation Report

A formal document from the valuation provider that sets out:

• Valuation figures
• Methods used
• Supporting analysis and data
• Legal disclaimers or limitations

Important: This report should be available to investors and regulators as evidence of the asset’s value.

Provide External Valuation Verification

Indicate whether the valuation has been independently reviewed or certified by a further third party. Where such verification exists, provide a link to the report or certificate. This adds transparency, builds investor trust, and may be required in regulated or institutional offerings.

Set an Ongoing Valuation Frequency

Define how often the asset’s value will be reassessed after the initial tokenization. Regular revaluation keeps secondary-market pricing current, supports accurate Net Asset Value (NAV) reporting, and helps meet investor-reporting obligations. Standard reassessment periods are:

• Monthly
• Quarterly
• Semi-annually
• Annually

This step records whether the asset to be tokenized is protected by insurance. Insurance reduces risk exposure for both issuer and investors, providing financial protection against damage, loss, theft, liability, or other events that could impair the asset’s value or operability. Documenting and disclosing coverage demonstrates responsible asset management and reinforces trust and transparency in the offering.

Is the Asset Insured?

Indicate whether the asset currently carries any form of insurance coverage. Confirming insurance shows the issuer has taken steps to mitigate risk – which may be required in certain regulated offerings or institutional investment scenarios.

Note: If the asset is not insured, the remaining fields on insurance do not apply and can be skipped.

Enter the Insurance Provider Name

Name the company or institution that issued the policy. This should be a recognized, licensed provider authorized to operate in the relevant jurisdiction; the insurer’s reputation and reliability can influence investor perception and due-diligence outcomes.

Select the Insurance Provider Country

Record where the insurance provider is based or licensed – select the provider’s country (200+ jurisdictions supported). This helps determine whether the policy is governed by local regulation and whether international coverage may apply, given the asset’s location and the jurisdiction of issuance.

Indicate the Insurance Date

Specify the effective date of the policy, confirming coverage is current or was active at the time of tokenization. Track any expiration date or renewal terms internally.

Upload an Insurance Report

Attach the official policy, certificate, or summary document setting out the terms, coverage details, insured amount, and relevant conditions. This is used to verify the existence and scope of coverage.

Provide External Insurance Verification

Where available, provide a link to a publicly accessible verification of the policy – a registration number in a national insurance database, a blockchain-based proof of insurance, or a certificate hosted by the provider. Optional, but it adds transparency and supports investor due diligence.

Completing this step demonstrates that appropriate risk mitigation is in place. Insurance coverage enhances legal and operational credibility and safeguards investor interests in the event of adverse events affecting the asset’s value or availability.

You leave Phase 2 with a complete, verifiable asset record – scope, valuation, ownership, insurance, and (where relevant) proof of reserves. That evidence base feeds directly into Phase 3, where you translate the structured asset into a concrete tokenization model: the rights the token conveys, its supply, and how it is issued and managed in Stobox Compass.