Investor
Controls available cash.
Resource 04 · Investor money architecture
Investor money without making your organisation a client-money operation.
One of the most important design decisions in the Fractional Assets operating model is separating investor cash from investment interests.
Dedicated virtual accountsInvestor cash autonomyProduct-level investment rulesControlled transaction workflows
The principle
The investor controls their cash. The organisation controls the investment rules.
Each verified investor can be provided with a dedicated virtual bank account in their own name through the approved payment architecture. An investor can transfer money into their account, view available cash, receive eligible distributions or proceeds and withdraw available cash independently.
How money moves
Cash and investment holdings are treated separately.
- 01
Investor funding
The investor transfers money directly to their own virtual account. Funds are associated with that verified investor and reflected as available cash within the platform.
- 02
Investment
When an investor subscribes to an eligible investment, the platform facilitates the transaction according to the product rules. Investment holdings are recorded separately from available cash.
- 03
Income and distributions
Where an investment generates distributions, rental participation, buybacks or other payments, proceeds are credited through the controlled payment architecture.
- 04
Withdrawal
Cash that is available and not committed to an investment can be withdrawn subject to applicable verification, AML/CTF and transaction controls.
Critical distinction
Cash availability is not investment liquidity.
An investor having control of available cash does not mean every investment can be redeemed instantly. The organisation determines the business rules governing investment products, including minimum holding periods, transfer eligibility, redemption windows, matched buyers, scheduled buybacks, compulsory acquisition events or other defined exit mechanisms.
Why it matters
A clearer division of responsibility.
Organisation
Controls asset and liquidity rules.
Fractional Assets
Operates the infrastructure connecting the two.
Partner benefit
Potentially reduced reconciliation, manual payment processing, custody/control complexity and operational scaling burden.
See how the operating platform could be configured around your proposition.
Discuss your organisation, asset strategy, investor base and preferred launch window with Fractional Assets.