Subscriptions

At a glance
Input	An admitted investor’s order for units, and its payment: on the ledger, in the payment asset, or off it (a bank transfer).
Output	The payment in the fund’s account; the units with the investor.
Settlement	On the ledger: one transaction on two registries, where the fund’s registry mints the units while the payment asset’s registry moves the payment. Off the ledger: the issuer mints once the cash is in, and the venue books the order against that mint.

Paid on the ledger

The payment asset is any cash asset on the DA Registry, such as a bank’s tokenized deposit or a stablecoin. A fund may take several, each under its own consent, and each order names the one it is paid in. The example pays in a tokenized deposit.

Who signs what

Transaction	Submitted by	Signed by	Seen by
Tx 1 · The order: the venue’s record of the subscription
Tx 2 · The subscription priced at the NAV
Tx 3 · The payment request (the token standard’s allocation request)			and its custodian,
Tx 4 · The payment set aside (an allocation: an amount reserved for one settlement)		, with the payment asset’s registry	; as executor
Tx 5 · The receipt of units readied (an allocation)		, with the fund’s registry	; as executor
Tx 6 · The request accepted		None
Tx 7 · Settle: units minted, payment made	as executor	Nobody signs again	its legs; all of it, its treasury account included; its leg; its subscription delivered

Tx 7 is one transaction on both registries: if either refuses its side, neither moves. The order is taken before the NAV is known (forward pricing): the price source signs it after the close (Tx 2), and the investor approves its payment once, through its custodian (Tx 4 to 6). Nobody signs again at settlement, because each side already authorized its leg: the investor with its allocations, and the fund’s registrar and its treasury account with the fund’s standing consent.

Paid off the ledger

When the investor pays by bank transfer, the payment is off the ledger, so it cannot settle in the same transaction as the units. The issuer mints once its bank confirms the cash, as funds do today, and the venue books the order against that mint.

Transaction	Submitted by	Signed by	Seen by
Tx 1 · The order
Tx 2 · The subscription priced at the NAV
Off the ledger · The payment, by bank transfer to the fund’s account
Tx 3 · The mint request, naming the subscription
Tx 4 · The units minted, once the cash is in		, on its registry
Tx 5 · The subscription delivered against that mint

The issuer can refuse a mint request, with a reason the investor reads. The venue delivers a subscription only against a mint of exactly its units, to its investor, made after the order, and only once.

Worked example

The payment asset (here a tokenized deposit) has two decimal places:


Order	30 units
NAV signed by the price source	1.003333
Units × NAV	30.09999
Paid, rounded up to the cent	30.10
Result	the investor’s deposit 30.10 lower, its units 30 higher, in one transaction

The rounding always favours the fund, by less than a cent. The demo (chapter 5) does the same for 1,000 units at the day’s NAV.

Controls

No approver signs a single order. The guardrails were set beforehand, under four eyes: the fund’s record and its policy, the investor’s admission, and the standing consent.
The venue cannot set the price: the consent mints only an order the price source priced, at that price, and only once.
Eligibility is checked twice: by NodeAsset before it takes the order (a frozen investor, a held fund or a policy limit stops it there, with the reason), and by the registry when the units arrive.
If either registry refuses its side, the whole transaction fails and nothing moves.
When an order is paid off the ledger, the venue books it only against the issuer’s mint of it; a mint with no order behind it is a reconciliation finding.
The investor sees only its own order. The fund’s issuer and treasury see the whole settlement. The payment issuer sees only its own leg, and runs nothing of NodeAsset’s.

Do it

POST /v1/subscriptions
{ "instrumentId": "FUND", "holderId": "alpha", "apId": "AP-TD", "units": "30.0", "subscriptionId": "lot-td-1" }

POST /v1/subscriptions/lot-td-1:settle    # first call: the payment request (Tx 3)
POST /v1/subscriptions/lot-td-1:settle    # once the investor has answered: settles (Tx 7)

# Paid off the ledger: once the issuer has minted the subscription's units (Tx 4)
POST /v1/subscriptions/lot-1:deliver
{ "reference": "<the mint request's reference>" }

See Subscribe and redeem. Related: Redemptions · Dealing cycles · The on-ledger payment leg · Who runs what

Start here

Workflows

Foundations

Paid on the ledger

Who signs what

Paid off the ledger

Worked example

Controls

Do it

​Paid on the ledger

​Who signs what

​Paid off the ledger

​Worked example

​Controls

​Do it

Paid on the ledger

Who signs what

Paid off the ledger

Worked example

Controls

Do it