{"id":4882,"date":"2026-07-28T07:31:01","date_gmt":"2026-07-28T07:31:01","guid":{"rendered":"https:\/\/www.innblockchain.com\/academy\/?p=4882"},"modified":"2026-07-28T07:36:04","modified_gmt":"2026-07-28T07:36:04","slug":"how-we-built-sto-token-for-a-us-vacation-property-open-to-international-investors","status":"publish","type":"post","link":"https:\/\/www.innblockchain.com\/academy\/how-we-built-sto-token-for-a-us-vacation-property-open-to-international-investors","title":{"rendered":"How We Built STO Token for a US Vacation Property Open to International Investors"},"content":{"rendered":"\n
Firm<\/strong><\/td>DIVAC LLC, Wyoming, USA<\/td><\/tr>
Sector<\/strong><\/td>Vacation Property<\/td><\/tr>
Regulations<\/strong><\/td>Reg S, Rule 144<\/td><\/tr>
Token Standard<\/strong><\/td>ERC 1400 (ERC-1410 + ERC-1594 + ERC-1643 + ERC-1644)<\/td><\/tr>
Investor Eligibility<\/strong><\/td>Non-US Investors<\/td><\/tr>
Challenge<\/strong><\/td>Enforcing Reg S compliance, a 5-year lock-up, continuous KYC, and dual-rail payments entirely on-chain<\/td><\/tr>
Solution<\/strong><\/td>ERC-1400 security token with tranche-level transfer restrictions, an on-chain identity registry, and a fiat + crypto payment gateway<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/p>\n\n\n\n

<\/span>The Situation<\/strong><\/span><\/h2>\n\n\n\n

Before engaging InnBlockchain, DIVAC initially worked with an online STO token generator. However, the token was built on a standard without native compliance controls that made it technically impossible to integrate the rules and logic that Reg S mandates. Compliance should be built into the protocol from the start. And this architectural gap is what brought DIVAC to us.<\/p>\n\n\n\n

DIVAC LLC, a limited liability company organized under the laws of the State of Wyoming, United States, is offering 150,000,000 DIVAC Tokens under Reg S to non-US persons(investors). Each DIVAC Token provides economic exposure to a portfolio of income-generating Florida vacation properties. The portfolio is managed through dedicated SPVs that acquire, develop, and operate Florida real estate assets.<\/p>\n\n\n\n

A five-year lock-up and investor transfer restrictions are enforced on-chain through ERC-1400 programmable compliance, preventing unauthorized transfers to U.S. Persons.<\/p>\n\n\n\n

What they need is a security token, the \u201cDIVAC\u201d Token, that enforces all these with applicable securities law requirements. They approached us with this clear objective and roadmap to create a security token that represents the vacation rental property backed by strong regulatory and technical specifications.<\/p>\n\n\n\n

<\/span>The Task<\/strong><\/span><\/h2>\n\n\n\n

The requirement is not just about token launch. It was to build a STO architecture that operates and functions under securities law scrutiny, handles the full investor cycle without any manual intervention. And it should enforce restrictions on transfers for US citizens – no access. Foreign investors must be registered in the on-chain Identity Registry verified through KYC procedures before they can hold or transfer the token.<\/p>\n\n\n\n

<\/span>Regulatory Framework & Lock-up Enforcement<\/strong><\/span><\/h3>\n\n\n\n

The offering is made solely to non-U.S. persons under Rule 902 of Regulation S, as an offshore transaction under Rule 903. Tokens are restricted securities, i.e no resales are permitted to US persons during the Reg S distribution complianceperiod, and no directed selling efforts can target US persons. On top of the regulatory minimum, DIVAC imposed a 5-year contractual lock-up at the client’s direction.The task was to encode all of this into the smart contract, so the protocol enforces compliance.<\/p>\n\n\n\n

<\/span>The STO Compliance Architecture – ERC 1400<\/strong><\/span><\/h3>\n\n\n\n

The token standard had to support the transfer rules to maintain the primary function natively. The three-state logic to be implemented into contracts is:<\/p>\n\n\n\n