# How SmartFunds Works

**Issuance: Creating a Tokenized SPV**

1. Setup: Define your investment objective and onboard investors.
2. Formation: Use SmartFunds to legally form and tokenize the SPV.
3. Funding: Pool investor capital into the SPV for the designated investment.

**Management: Transfer Agent Role**

As an SEC-registered Transfer Agent, SmartFunds:

* Manages accurate records of ownership.
* Oversees compliance with SEC regulations.
* Handles corporate actions, dividends, and distributions.

**Liquidity: On-Chain Secondary Trading**

* LP interests are traded on compliant on-chain secondary markets via our broker-dealer and ATS partners.
* Investors gain access to liquidity without manual brokerage processes, mitigating delays and counterparty risks.