# Product Suite

# What Gets Issued

The token represents a fractional claim on a Luxembourg-securitized bond, not the real estate directly. The investor's legal rights derive from the bond under Luxembourg law. The ISIN — issued via SIX SIS in Switzerland — is the unique identifier for the security.

One property, one SPV compartment, one ISIN, one token. No commingling of assets. Each product is a standalone, ring-fenced legal instrument.

The bond exists independently of the blockchain layer. Investor rights are protected by Luxembourg law regardless of what happens to the token or the smart contract. The token is a settlement and distribution layer on top of an already-existing, fully regulated security.

# ERC-3643 Compliance Architecture

Tortuga uses the ERC-3643 (T-REX) permissioned token standard. Compliance is enforced at the smart contract level through three components:

# Identity Registry

Every investor wallet is linked to a verified on-chain identity record. The registry stores cryptographic claims — not personal data — that prove KYC status, accreditation status, and jurisdiction. Only registered wallet addresses can hold or transact in the token. The registry is maintained by Tortuga's compliance layer and updated via Chain Fusion synchronization from ICP.

# Compliance Module

Modular rules are encoded per token at deployment: investor caps, geographic restrictions (US persons excluded across all issuances), lockup periods, transfer limits, and accreditation requirements. Rules are checked automatically before every transfer. Rules can be updated by the Tortuga compliance agent without redeploying the token contract, subject to timelock.

# Transfer Validation

canTransfer(from, to, amount) is called before every transfer. The function checks both the Identity Registry (are both wallets registered and active?) and the Compliance Module (do all configured rules pass?). If any condition fails, the transaction is rejected on-chain. No manual override path exists.

For the ICP synchronization mechanism behind the Identity Registry, see architecture/compliance-layer.md.

# Current Product Portfolio

	I80	Eagle Creek	Sonoran	Samana	Capacity
Asset Type	Industrial NNN	Residential	Multifamily Dev.	Land Bank	Scalable
Location	Des Moines, IL	Indianapolis, IN	Phoenix, AZ	Dominican Rep.	US + Intl.
Tenor	5 years	3 years	3 years	Ongoing	2.5–5 yrs
Cash Yield	6.5%–10%	5%–7.5%	—	12%	Varies
Target IRR	12%	14%	20% / 1.7x	25%	6–25%
Risk Profile	Very Low	Low	Moderate	Moderate	Range
Equity Partner	JSB	Local Op.	Leon Capital	In-house	Varies

# I80 — Industrial Warehouse Portfolio

Newly built warehouse portfolio in Des Moines, Illinois, acquired with equity partner JSB. Fully leased to Bycrop (Triple-B rated) on a 15-year triple net lease with 3% annual contractual rent escalation. The tenant bears all operating costs, taxes, and insurance. Cash flow rises from 6.5% to 10% over the 5-year investment horizon, with an IRR of 12% driven by both coupon income and residual value capture on resale at lease renewal. This is the lowest-risk product in the current suite: a credit-backed, fully occupied, income-generating asset with a long-term lease.

# Eagle Creek — Light Value-Add Residential

Portfolio of 184 houses in Indianapolis, Indiana, operated by an established local partner with a multi-year track record. The strategy is light value-add: cosmetic renovations (painting, appliance upgrades, amenity additions) to drive rent increases in a market with significant housing supply deficit. Cash flow of 5–7.5% cash-on-cash from day one, with a 14% IRR over a 3-year hold. Low capital expenditure requirements and strong demand fundamentals make this a defensive income strategy with modest upside.

# Sonoran — Multifamily Development

Ground-up multifamily residential development in Phoenix, Arizona, directly adjacent to the TSMC semiconductor campus ($165B investment area). Co-developed with Leon Capital, a $3 billion private equity firm. Land was acquired below market and density doubled through entitlement work. No cash flow during the 3-year development period — this is a pure capital appreciation play targeting a 20% IRR / 1.7x equity multiple. Higher risk than the income products, mitigated by the institutional partner and the infrastructure-driven demand thesis.

# Samana — Land Bank

Land bank in the Dominican Republic — the first non-US product in the suite. Strategy is bulk land acquisition at discounted pricing, subdivision, and resale in smaller parcels. The product has been in development for 3 years and was backtested internally with 100 plots at comparable pricing. Generates 12% cash-on-cash through ongoing parcel sales and targets a 25% IRR. This is a fully unlevered structure — no debt amplifying risk. Provides geographic diversification outside the US-centric portfolio.

# Portfolio and Vault Construction

Individual products can be deployed standalone, but the platform supports aggregation into portfolio or vault structures for partners seeking blended, predictable yield exposure.

# Vault Bundling

Multiple products are combined into a single vault that provides investors with diversified exposure across asset types, geographies, and risk levels. The vault absorbs new products over time as they are originated, building yield and diversification incrementally. Capital appreciation assets (like Sonoran) contribute to total return, while income assets (like I80 and Eagle Creek) provide the yield floor.

# Cash Reserve Model

A portion of generated yield is withheld in stablecoins within the vault to fund secondary redemptions. For example, holding 10% of capital in liquidity reduces overall yield performance by approximately 10% but enables partial investor exits without forced asset sales. The reserve ratio is configurable based on the partner's liquidity requirements.

# Maturity Window Model

Products have defined maturities (typically 2.5–5 years). As products mature and capital is returned, natural liquidity windows open. By staggering product maturities within a vault, a rolling redemption schedule can be designed that provides periodic exit opportunities without maintaining a standing cash reserve.

# Yield Design Flexibility

Estating currently produces roughly half yield-bearing and half non-yield-bearing products. For partners with a strong preference toward smooth, regular income, the origination pipeline can be tilted toward income-driven assets — triple net leases, stabilized residential, and cash-flowing land strategies. The origination engine curates deals to meet specified yield and risk parameters, not the other way around.

# Distribution Mechanics

# Off-Chain Distribution

Estating's existing distribution operates through the traditional wealth management system. Once a product is issued and the ISIN is assigned, it is presented to regulated wealth management firms across 30+ platforms. Those firms evaluate the product and purchase it through the banking system via the Swiss paying agent. The security settles into the investor's brokerage account.

# On-Chain Distribution (Tortuga)

Investors subscribe to a product by deploying USDC through the platform. The stablecoins are converted to fiat and deployed into the underlying asset via the SPV. Yield is accrued per the product schedule and distributed back to token holders as USDC. The investor holds an ERC-3643 token in their verified wallet, representing their fractional claim on the bond.

Both distribution channels can operate in parallel on the same product. The same ISIN-coded bond can be held off-chain in a brokerage account and on-chain as a token — the legal instrument is the same, only the settlement layer differs.

For the on-chain distribution mechanics, see architecture/yield-distribution.md.

# DeFi Composability

Compliance travels with the token. DeFi protocols accepting Tortuga tokens as collateral do not inherit KYC liability — the token enforces eligibility on every transfer regardless of the interface. When canTransfer() is called, both the sender and receiver are checked against the Identity Registry and Compliance Module. This is what makes institutional participation in DeFi structurally possible without compliance exposure for the protocol.

ERC-3643 tokens can be used as collateral in lending markets, deposited in yield strategies, or traded on secondary markets — and every interaction is subject to the same compliance enforcement that applies to a direct wallet-to-wallet transfer.

For the Morpho Blue integration architecture, see architecture/defi-integration.md.