Problem: ERC-20 tokens allow transfer to any address — no KYC enforcement, no investor count limits, no compliance on secondary trades. Platform needed transfer restrictions enforceable at the contract level, not the application layer.
Solution: ERC-1400 security token standard with canTransfer checking a whitelist contract before every transfer: both parties KYC verified, transfer within investor holding percentage limit, property investor count limit not exceeded. Custom order-book contract (not DEX) maintained closed-loop compliance environment. Forced transfer mechanism for court orders. FCA security token compliance verified by Big Four external audit.
Technology: Solidity · ERC-1400 · OpenZeppelin · Hardhat · Ethereum · IPFS
Optimisation pattern: erc20-unrestricted-transfer-to-erc1400-compliance-checked-security-token
Outcomes:
Minimum investment: £50,000 → £500 (estimated 40× addressable investor base). Transfer restrictions enforced at contract level — no application bypass possible. First property fully subscribed in 11 days. Big Four audit confirmed FCA requirements met.