Institutional-Grade Fund Infrastructure

Launch Tokenized Hedge Funds with ERC-4626 Vault Standard

Launch a tokenized hedge fund with Ment Tech using the ERC 4626 vault standard, with automated NAV, compliant investor onboarding, and institutional custody built in. Your LP interests become programmable shares that can connect to DeFi while staying controlled and regulation-ready. Go live in 10 to 12 weeks.

Fund AUM Tokenized
$ 0 M+
Fund Launches
0 +
Jurisdictions
0 +
Settlement Time 
0 ERC Standard
Quick Answer

What is hedge fund tokenization and how does ERC-4626 work?

Hedge fund tokenization is the process of turning LP ownership into programmable fund shares, so investors hold a clean digital representation of a real hedge fund position instead of tracking it through PDFs and transfer agent steps. ERC 4626 matters because it standardizes how those shares are issued and redeemed, using the same deposit, mint, withdraw, and redeem flows that many DeFi vaults already understand. That means NAV and fees can be calculated by rules instead of spreadsheets, and redemptions can run on defined windows with fewer manual touchpoints. If you’re looking for a hedge fund explained in one line, this is “the same fund structure, but faster operations and clearer ownership,” while keeping controls for who can buy, hold, and transfer.

Comparison

Why Choose Ment Tech for Hedge Fund Tokenization?

Launch production-ready tokenized funds in 10–12 weeks—not 12–18 months. See how we compare to alternatives.

Features
Build In-House
Generic Providers
🚀 Time to Market
10–12 weeks
12–18 months
24–30 weeks
Full Production Readiness
100% launch-ready
MVP only
Basic features
ERC-4626 Vault Standard
Included
Custom build required
Limited/None
Automated NAV Engine
Real-time (15-min)
Manual calculation
Daily at best
DeFi Composability
Supported
Limited
Not supported
Performance Fee Automation
High-water mark + hurdle
Spreadsheet-based
Basic only
Institutional Custody
7+ partners integrated
6+ months setup
1–2 options
Prime Broker Integration
Goldman, MS, JPM ready
Individual builds
Not available
Multi-Jurisdiction Support
15+ jurisdictions
Expensive legal work
2–3 jurisdictions
Investor KYC/AML
Pre-integrated
3–6 months build
Basic
White-Label Portal
Fully customizable
Custom development
Limited branding
Smart Contract Audits
CertiK/Hacken included
$150K+ additional
Basic audit
24/7 Support
Included
Your team
Business hours only
Total Cost (Year 1)
$150–300K
$1M–2M+
$400–700K

Our Recommendation

Launch with Ment Tech in 10 to 12 weeks, not 12 to 18 months, and build a $1M+ building from scratch. Get an ERC 4626 fund platform with automated NAV, institutional custody, and compliance built in.

Industry Challenges

Traditional Hedge Funds Are Broken for the
Modern Era

Legacy fund structures create massive friction for both managers and investors, limiting capital formation and operational efficiency.

$1M+ Minimum Investments

High minimums shut out most qualified investors and make it harder to diversify your LP base and raise consistently.

Lock-Up Periods and Illiquidity

One- to three-year lockups and limited redemption windows frustrate investors and add pressure on liquidity planning.

Manual fund administration

NAV, fees, capital calls, and distributions often run on spreadsheets, email threads, and third-party admin coordination.

Geographic Restrictions

Cross-border fundraising entails significant compliance work, slows onboarding, and requires expensive multi-jurisdictional structuring.

Slow Settlement and Reporting

Monthly NAV cycles, delayed tax data, and legacy settlement timelines slow reporting and make operations less responsive.

Limited LP Transparency

LPs get periodic reports, but they still lack a simple real-time view of performance, exposure, and risk.

$5T+

Global Hedge Fund AUM

85%

Funds Have 1+ Year Lockups

2%

Average Management Fee

20%

Performance Fee Standard

The Cost of Inaction

Every month you stay on legacy fund infrastructure, you keep paying extra for manual ops, limit fundraising to the same old channels, and fall behind as institutional investors shift attention toward the $2T+ tokenized securities market.

Ready to Tokenize Your Assets?

Schedule a free 30-minute strategy call with our tokenization architects.

Compliance & Regulatory

Global Fund Compliance Built Into
Every Layer

Navigate complex fund regulations across 15+ jurisdictions with automated compliance, investor qualification, and regulatory reporting.

🇰🇾

Cayman Islands

CIMA

AML Regulations

SPC/Segregated Portfolio

🇻🇬

British Virgin Islands

BVI FSC

SIBA

Private Fund Act

🇺🇸

Delaware, USA

LP/LLC Acts

Reg D

Investment Advisers Act

🇱🇺

Luxembourg

CSSF

ICAV

QIAIF

🇸🇬

Singapore

MAS

SFA

VCC Structure

🇮🇪

Ireland

Central Bank

SFA

Real Estate Regulations

🇨🇭

Switzerland

FINMA

Limited Qualified Investor Fund

🇬🇧

United Kingdom

FCA

AIF

NURS

SOC 2 Type II

Security & availability controls

ISO 27001

Information security management

GDPR Compliant

EU data protection

PCI DSS

Payment card security

CCPA Compliant

California privacy act

AIFMD

Alternative Investment Fund Managers Directive compliance

Investment Advisers Act

SEC registered investment adviser requirements

Regulation D

Private placement exemption for accredited investors

FATCA/CRS

Automated tax reporting and information exchange

AML/CFT

Anti-money laundering and counter-terrorism financing

MiCA

EU Markets in Crypto-Assets regulation readiness

Our Solution

ERC-4626: The Standard for Tokenized Fund Infrastructure

ERC 4626 gives hedge funds a clean vault standard to issue and redeem on-chain fund shares with predictable rules, clearer NAV handling, and controlled access for investors.

ERC 4626 Vault Architecture

Standard vault flows for subscriptions and redemptions, so fund shares can connect to DeFi systems without heavy custom work.

Automated NAV Engine

Rule-based NAV updates with built-in fee math, including high water marks, hurdles, and scheduled crystallization periods.

Institutional Custody Integration

Institutional custody is connected with MPC-style security and approval workflows that match how hedge funds manage assets safely.

Multi-Jurisdiction Compliance

Support for Cayman, BVI, Delaware, Luxembourg, and Singapore with automated investor qualification and transfer restriction enforcement.

Multi-Strategy Support

Works across long-short, market-neutral, macro, quant, and multi-strategy setups, covering what hedge funds invest in.

Real-Time Liquidity Controls

Subscriptions and redemptions follow your configured windows, gates, lockups, and side pockets without manual processing steps.

ROI & Value

The Business Case for Fund Tokenization

Quantifiable benefits across capital raising, operations, and investor experience.

Key Metrics

vs. larger investor pool
0 -5x
vs. reduction possible
- 0 %
60-80% vs. through automation
0 -80%

Real-time

vs. vs monthly manual

Fund Administration

Automated NAV, reporting, reconciliation

$200–500K/year

Transfer Agent Fees

On-chain cap table and transfers

$100–200K/year

Legal & Compliance

Automated investor qualification

$150–300K/year

Investor Relations

Self-service portal and real-time reporting

$75–150K/year

Potential Annual Savings

Up to 70%

Our Team

Fund Technology Experts You Can Trust

Deep expertise in fund operations, smart contract development, and financial infrastructure.

Fund AUM tokenized
0 M+
Tokenized fund launches
0 +
Jurisdictions supported
0 +
Fund technology experts
0 +

Former Goldman Sachs, Citadel, Two Sigma engineers

CFA charterholders and fund operations specialists

Solidity/Rust smart contract experts

SEC, MAS, and FCA regulatory experience

SOC 2 and ISO 27001 certified team

Chainlink integration specialists

See Our Platform in Action

Get a personalized demo tailored to your asset class and compliance needs.

Case Study

Case Study: $200M
Crypto Hedge Fund Tokenization

Client

Digital Asset Investment Manager

The Challenge

The fund wanted to bring institutional LPs into a crypto strategy without the usual friction. They needed LP interests tokenized, the minimum ticket dropped from $1M to $100K, and a clear NAV view that updated frequently. They also required ERC 4626 compatibility and automated 2 and 20 fees with high water mark tracking.

Our Solution

Ment Tech built an ERC 4626 vault-based fund setup with a NAV oracle updating every 15 minutes, Fireblocks custody workflows, and on-chain performance fee logic. LPs onboarded through a branded portal with live holdings visibility and export-ready K-1 preparation data.

$85M in first 6 months

New Capital Raised

3x growth (45→130 LPs)

Investor Base

$100K down from $1M

Min Investment

15 min vs monthly manual

NAV Calculation

-70% through automation

Admin Cost Reduction

“Ment Tech transformed our fund operations. Real-time NAV, automated fee crystallization, and the ability for our tokens to be used as collateral in DeFi have been game-changers. We raised more capital in 6 months than the previous 2 years combined.”
Michael Chen
Managing Partner at Confidential Crypto Fund

Core Capabilities

Complete Tokenized
Fund Platform Capabilities

Every feature institutional fund managers need from ERC-4626 vault contracts to automated compliance and investor relations.

ERC 4626 Vault Smart Contracts

ERC 4626 vault contracts convert LP interests into on-chain fund shares with consistent subscription and redemption behavior.

Use case: Enable fund tokens as collateral on Aave, Compound, or MakerDAO

Automated NAV and Fee Engine

NAV updates and fee logic run automatically, including high water marks and crystallization schedules, reducing manual fund operations.

Use case: Eliminate manual NAV calculations and third-party administrators

Investor Onboarding and KYC/AML

Investor verification and accreditation checks are built into onboarding, so only eligible LPs can subscribe and hold shares.

Use case: Onboard investors in minutes with automated compliance.

Compliance Transfers and Secondary Liquidity

Transfer rules enforce jurisdiction and investor status, enabling controlled secondary liquidity without breaking compliance.

Use case: Ensure every transfer meets regulatory requirements automatically.

LP Dashboard and Investor Reporting

LPs get real-time visibility plus automated statements and tax-ready outputs, making hedge fund reporting clearer and faster.

Use case: Provide LP transparency that differentiates your fund.

Multi-Currency Subscriptions

Support for fiat and stablecoins helps expand the investor base while keeping accounting and NAV tracking aligned.

Use case: Process $10M+ subscriptions in minutes, not weeks.

Multi-Strategy and Fund of Hedge Support

Supports long-short, macro, quant, and fund of hedge structures with strategy-level tracking for complex mandates.

Use case: Expand investor base with flexible payment options.

Prime Broker and Administrator Integrations

Connects with prime brokers and fund admins for position sync and reconciliation without disrupting existing workflows.

Use case: Seamless integration with existing fund service providers

Industry Applications

Tokenized Fund Structures We Build

From single-strategy hedge funds to complex fund-of-funds structures—our platform adapts to your mandate.

Digital Assets

Crypto Native Hedge Fund

Launch a compliant crypto hedge fund with automated NAV, institutional onboarding, and support for long-short, market-neutral, and arbitrage strategies.

24/7 NAV visibility

DeFi-ready share format

Lower minimum entry

Algorithmic Trading

Quantitative Trading Fund

Tokenize a quant fund with real-time performance attribution, automated fee logic, and strategy-level NAV tracking built for systematic execution.

Live P&L attribution

High water mark support

Integration-friendly setup

Private Equity and VC

Venture Capital Fund

Tokenize LP interests for smoother capital calls, clearer IRR tracking, and optional secondary liquidity for existing LP positions.

Capital call automation

IRR and TVPI tracking

LP transfer support

Real Estate

Real Estate Private Equity Fund

Build a tokenized real estate fund with property-level valuation tracking, distribution automation, and structure-aware compliance support.

Property-level tracking

Waterfall distributions

Tax-ready outputs

Multi-Manager

Fund of Funds Platform

Create a fund of funds layer that aggregates managers, rebalances allocations, and improves look-through transparency for LP reporting.

Multi-manager allocation

Aggregated NAV view

Look through the reporting

Credit

Credit and Fixed Income Fund

Launch a tokenized credit fund with loan-level tracking, interest accrual automation, and waterfall logic for private credit structures.

Loan-level tracking

Interest accrual automation

Waterfall mechanics

Security & Audit

Institutional-Grade Security for Fund Operations

Multi-layered security architecture protecting fund assets and investor data with SOC 2, regular audits, and 24/7 monitoring.

CertiK

Smart contract security audits

Hacken

Blockchain security services

Trail of Bits

Security research & auditing

Quantstamp

Smart contract verification

Consensys Diligence

Ethereum security experts

SOC 2 Type II

ISO 27001

GDPR Compliant

CCPA Compliant

PCI DSS (for payment processing)

Multi-signature controls (3-of-5) for all fund movements

MPC custody eliminating single points of failure

HSM-based transaction signing

Real-time anomaly detection and alerting

Automated circuit breakers for unusual activity

24/7 Security Operations Center monitoring

Quarterly penetration testing

Annual smart contract re-audits

Encrypted data at rest and in transit (AES-256

Geographic redundancy across 3+ regions

Enterprise-Grade Security

Bank-level encryption and compliance standards

256-bit AES Encryption

99.99% Uptime SLA

24/7 Monitoring

Get Your Custom Tokenization Quote

Share your requirements and receive a detailed proposal within 48 hours.

Technical Architecture

ERC-4626 Fund Infrastructure
Architecture

Battle-tested architecture powering $500M+ in tokenized fund AUM with institutional security, DeFi composability, and global compliance.

System Architecture
01
Investor Interface Layer

LP portal, mobile app, and API access

White-Label Investor Portal

Mobile LP App (iOS/Android)

Subscription/Redemption Interface

Performance Dashboard

API Gateway

02
Fund Operations Layer

Core fund management and automation

NAV Calculation Engine

Fee Crystallization Module

Capital Call Processor

Distribution Engine

Investor Qualification Service

Reporting Generator

03
Smart Contract Layer

ERC-4626 vault and compliance contracts

ERC-4626 Vault Contract

Share Token (ERC-20)

Compliance Module (ERC-3643)

Fee Distribution Contract

Governance Module

Upgrade Proxy (UUPS)

04
Data & Oracle Layer

Pricing, analytics, and external data

Chainlink Price Feeds

NAV Oracle Network

Risk Analytics Engine

Position Data Aggregator

FX Rate Feeds

The Graph Indexer

05
Custody & Settlement Layer

Institutional custody and trade settlement

Fireblocks MPC Custody

Prime Broker Integration

Trade Settlement Engine

Bank/Wire Integration

Stablecoin Rails

Reconciliation Service

06
Compliance & Security Layer

KYC, AML, and security infrastructure

KYC/AML Service

OFAC Screening

Accreditation Verification

Transfer Agent Module

Audit Trail Logger

Security Monitoring

Fireblocks

Anchorage

BitGo

Copper

Coinbase Prime

Fidelity Digital

Goldman Sachs

Morgan Stanley

JP Morgan

Interactive Brokers

Hidden Road

SS&C

Citco

NAV Consulting

Trident

MG Stover

Apex

Chainlink

Pyth

Band Protocol

API3

DIA

Bloomberg

Synaps

Jumio

Onfido

Chainalysis

Elliptic

TRM Labs

Ethereum

Polygon

Arbitrum

Avalanche

Base

Optimism

Multi-signature fund controls (3-of-5 minimum)

MPC custody with institutional-grade key management

Hardware security modules (HSM) for signing operations

Real-time transaction monitoring and anomaly detection

Automated circuit breakers for unusual redemption activity

24/7 SOC monitoring with incident response protocols

Regular penetration testing and smart contract audits

GDPR/CCPA compliant data handling and encryption

Technology Stack

Enterprise-Grade Technology Stack

Battle-tested infrastructure powering institutional fund operations.

Blockchain Networks

Ethereum
Polygon
Arbitrum
Avalanche
Optimism
Base

Infrastructure

AWS
Google Cloud
Azure
IPFS
Arweave
Chainlink
The Graph
Alchemy
Infura
QuickNode

Smart Contract Standards

ERC-4626
ERC-20
ERC-3643
OpenZeppelin
UUPS Proxy
Chainlink VRF
Fireblocks
Anchorage
BitGo
Chainlink
Synaps
Chainalysis
The Graph
Alchemy

30+ technologies integrated

Our Process

From Fund Concept to Live
Platform in 10-12 Weeks

Our proven methodology delivers production-ready tokenized hedge fund infrastructure with full regulatory compliance and institutional integrations.

Total Timeline: 10-12 weeks to production launch

Step 1 1–2 weeks

Fund Structure & Legal Framework

Define fund structure, token economics, fee structures, and regulatory strategy. Coordinate with fund counsel.

Deliverables
Fund structure recommendation Token economics model Fee structure design Regulatory pathway analysis
Step 2 3–4 weeks

ERC-4626 Vault Architecture

Develop ERC-4626 vault contracts, NAV logic, fee mechanisms, liquidity parameters, and compliance layer.

Deliverables
Vault smart contract suite NAV oracle integration Fee crystallization logic Compliance module
Step 3 2 weeks

Custody & Prime Broker Integration

Connect custody and prime broker accounts, configure settlement and reconciliation workflows.

Deliverables
Custody setup Prime broker API integration Settlement workflows Position sync automation
Step 4 2 weeks

Investor Portal & KYC Setup

Deploy white-labeled portal with onboarding flows, KYC/AML, accreditation, and document management.

Deliverables
Branded portal KYC/AML integration Subscription workflows Document vault
Step 5 2 weeks

Security Audit & Testing

Audit and conduct end-to-end testing across operations, edge cases, and stress scenarios.

Deliverables
Audit report Pen test results UAT completion Compliance verification
Step 6 1 week

Production Launch & LP Onboarding

Deploy to mainnet, onboard LPs, execute first subscriptions, and provide launch support.

Deliverables
Mainnet deployment LP onboarding First NAV calculation Launch support
Launch & Ongoing Support

Engagement Models

Real Estate Tokenization Engagement Models

Choose the model that fits your portfolio size, timeline, and internal capabilities.

Emerging Manager

For funds under $50M AUM launching their first tokenized structure.

Ideal for

New fund launches, crypto-native managers, pilot programs

Growth Fund

For established funds $50M-500M AUM seeking institutional infrastructure.

Ideal for

Series B+ funds, multi-strategy managers, institutional LPs

Institutional Platform

For large managers and platforms seeking enterprise-grade infrastructure.

Ideal for

$500M+ AUM, fund administrators, prime brokers launching tokenized products

What's Included in Every Engagement

FAQ

Hedge Fund Tokenization FAQs

Everything you need to know about tokenizing real estate properties.

ERC 4626 is a common vault standard that makes tokenized fund shares behave in a predictable way across the ecosystem. It defines how investors enter and exit the vault, so integrations are smoother, and the share price stays clearly linked to the fund’s underlying assets.

The platform pulls pricing for every position, applies reliable methods for thin liquidity, and factors in fees automatically. NAV is then published on-chain on a steady schedule, so LPs get a near real-time view instead of waiting for manual spreadsheets.

Yes, when transfers follow compliance rules. We verify who can receive shares based on KYC, accreditation, and jurisdiction, so secondary liquidity is possible without losing control over who is allowed to hold the asset.

Smart contracts track high water marks, hurdle logic, and the fee schedule you choose. When the fund earns above the agreed level, the fee is calculated transparently and paid automatically, which reduces disputes and back office workload.

We support institutional custody setups where assets are held with qualified providers and approvals match your internal policies. This typically includes MPC-based controls, configurable signing flows, and separation between trading activity and treasury permissions.

Investors complete verification in the portal and receive an eligibility status that controls subscriptions and transfers. Ongoing checks continue after onboarding, which helps keep the tokenized fund compliant as risk signals and screening lists change.

We support widely used hedge fund domiciles such as Cayman, BVI, and Delaware, along with other major jurisdictions when required. The onboarding rules and transfer controls can be configured to match your structure and legal requirements.

Yes, most conversions start with a parallel vehicle or feeder that runs alongside the existing fund. Investor records are mapped, and tokens are issued to represent LP interests, allowing a controlled migration without disrupting operations.

Each strategy can run in its own vault with its own NAV, and a parent vault aggregates them into one investor-facing share. This works well for a fund of hedge strategies because allocations can change without breaking reporting or valuation.

LPs get a live portal view plus periodic statements, and managers get operational dashboards with exportable data. Reporting outputs are designed to fit accountant and regulator workflows, so teams spend less time formatting and more time reviewing.

A full production launch typically fits into a 10- to 12-week cycle, covering fund setup, vault and NAV components, custody integrations, portal deployment, and audit plus testing. The focus is on a real launch with operational readiness, not a prototype.

Tokenized LP interests describe how ownership is represented, not what the fund invests in. A crypto fund is one answer to "What do hedge funds invest in?" while tokenization can apply to any strategy, which is often the simplest hedge fund-explained view for investors.

You set the rules for frequency, notice periods, gates, lockups, and side pockets, and the contracts enforce them consistently. Investors submit requests through the portal, and the system processes them at the next eligible window with full traceability.

Yes, we can integrate position and financing data from prime broker workflows and reflect it inside valuation and reporting. This lets managers keep existing relationships while upgrading the infrastructure underneath.

Deployments include independent smart contract audits along with application and infrastructure testing. Audit artifacts can be shared with LPs, and monitoring continues after launch, so security stays active, not one-and-done.

Investor activity is recorded in a clean ledger that tracks subscriptions, redemptions, fees, and allocations. At tax time, you export K 1 preparation data or local equivalents, which reduces manual reconciliation and shortens the reporting cycle.

Yes, when the structure matches institutional expectations around custody, controls, and compliance evidence. The experience remains familiar, which helps answer what hedge funds are for committees, while settlement and reporting become faster and clearer.

Upgrades can be handled through controlled governance using multi-signature approvals and time locks. Balances and investor records remain intact, and changes follow a disciplined release process that protects LPs while keeping the platform adaptable.

Still have questions?

Can't find the answer you're looking for? Our team is here to help.

Summary

Key Takeaways

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Ready to Launch Your Tokenized Hedge Fund?

Join the fund managers who've raised $500M+ through tokenized structures. Get a custom architecture proposal for your fund in 48 hours.

Get in Touch

Call Us

+91-74798-66444

Email Us

Contact@ment.tech

WhatsApp

+91-74798-66444

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