AQ Capital

Regulatory Pathway Matrix

Multi-jurisdiction tokenised fund registration strategy — from Cayman launch to global retail distribution
PREPARED: 2026-03-17 STATUS: ACTIVE CLASSIFICATION: CONFIDENTIAL
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Contents

  1. Strategic Overview
  2. Jurisdiction Deep Dives
  3. Regulatory Comparison Matrix
  4. SEC 40% Test Dashboard
  5. Service Provider Matrix
  6. Regulatory Timeline
01 Strategic Overview

AQ Capital's tokenisation strategy targets global retail distribution through a phased multi-jurisdiction rollout. The approach is designed to maximise investor reach while maintaining regulatory clarity at every stage.

Phase 1 launches from the Cayman Islands under the Reg S exemption for non-US persons — leveraging February 2026 legislation that explicitly carves out tokenised funds from VASP regulation. This provides the fastest path to market with the broadest non-US investor base.

Phase 2 expands simultaneously into the EU (via MiCA + DLT Pilot Regime), the UAE (ADGM/DIFC), and Singapore (MAS) — unlocking full retail distribution across Europe, Middle East, and Asia.

Phase 3 opens the US market — initially through Reg D 506(c) for accredited investors, then scaling to retail via Reg A+ (up to $75M) in partnership with Securitize as the registered ATS and broker-dealer.

All jurisdictions share a unified technical stack: ERC-3643 compliant tokens with on-chain identity (ONCHAINID), enabling seamless cross-jurisdiction compliance and secondary market portability.

02 Jurisdiction Deep Dives
🇰🇾

Cayman Islands

Priority 1
Launch
Entity
AQ Yield Fund SPC (Segregated Portfolio Company)
Regulator
CIMA — Cayman Islands Monetary Authority
Registration
Registered Mutual Fund under Mutual Funds Act
Key Advantage
Feb 2026 legislation carves out tokenised funds from VASP regulation
Offering
Reg S exemption for non-US persons
Investor Restrictions
No US persons (covered by US entity in Phase 2-3)
Timeline
2-3 months for formation + CIMA registration
Cost
$50K-$100K legal + $25K-$50K CIMA fees
Fastest path to market. SPC structure enables each token product to sit in a segregated portfolio with ring-fenced assets — ideal for a multi-token suite.
🇪🇺

European Union

Phase 2
Phase 2
Entity
AQ Capital EU — Ireland ICAV or Luxembourg RAIF
Regulator
Central Bank of Ireland or CSSF Luxembourg
Framework
MiCA (Markets in Crypto-Assets Regulation) + DLT Pilot Regime
Key Advantage
DLT Pilot Regime cap raised from EUR 6B to EUR 100B — no practical limit
Offering
Full retail distribution across all 27 EU member states via passporting
Investor Restrictions
Full retail access with appropriate disclosures
Timeline
6-12 months for entity + MiCA authorisation
Cost
$150K-$300K legal + regulatory fees
Largest retail opportunity. A single MiCA authorisation grants distribution rights across 450 million consumers in the EU single market.
🇺🇸

United States

Phase 2-3
Phase 2-3
Entity
AQ Capital US LLC (Delaware)
Regulator
SEC + CFTC (CPO registration mandatory for commodity interests)
Framework
Reg D 506(c) for accredited investors first, Reg A+ ($75M cap) for retail later
Key Advantage
Partnership with Securitize (ATS + BD license)
Offering
Reg D — unlimited raise from accredited; Reg A+ — up to $75M from retail
Investor Restrictions
Reg D = accredited only; Reg A+ = retail with investment limits
Timeline
Reg D: 3-6 months · Reg A+: 12-18 months
Cost
Reg D: $100K-$200K · Reg A+: $200K-$400K
SEC Investment Company Act 40% test. Portfolio must stay under 25% securities allocation (currently ~2%). CPO registration is mandatory given commodity exposure. Securitize provides both ATS and transfer agent infrastructure.
🇦🇪

UAE — ADGM / DIFC

Phase 2
Phase 2
Entity
AQ Capital ADGM Ltd
Regulator
FSRA (Abu Dhabi Global Market) or DFSA (DIFC)
Framework
Virtual Asset framework; DFSA shifted to firm-led token assessment Jan 2026
Key Advantage
Tax-free jurisdiction, crypto-friendly, growing institutional hub
Timeline
4-8 months
Cost
$100K-$200K setup + licensing
🇸🇬

Singapore

Phase 2
Phase 2
Entity
AQ Capital SG Pte Ltd
Regulator
MAS — Monetary Authority of Singapore
Framework
Payment Services Act + Securities and Futures Act (capital markets license)
Key Advantage
MAS Nov 2025 revised guide covers full token lifecycle
Timeline
6-12 months
Cost
$100K-$200K
03 Regulatory Comparison Matrix
Aspect 🇰🇾 Cayman 🇪🇺 EU 🇺🇸 US (Reg D) 🇺🇸 US (Reg A+) 🇦🇪 UAE 🇸🇬 Singapore
Entity Type SPC ICAV / RAIF LLC LLC ADGM Ltd Pte Ltd
Retail Access Non-US Full EU No Yes ($75M cap) Yes Yes
Timeline 2-3 mo 6-12 mo 3-6 mo 12-18 mo 4-8 mo 6-12 mo
Setup Cost $75-150K $150-300K $100-200K $200-400K $100-200K $100-200K
Annual Cost $50-100K $100-200K $50-150K $100-200K $50-100K $50-100K
Token Standard ERC-3643 ERC-3643 ERC-3643 ERC-3643 ERC-3643 ERC-3643
Secondary Market MERJ MiCA MTF Securitize ATS Securitize ATS ADGM DEX SGX Digital
04 SEC 40% Test Dashboard

Under the Investment Company Act of 1940, a fund must not hold more than 40% of its assets in securities to avoid registration as an investment company. AQ Capital maintains a significant buffer — current securities exposure sits at approximately ~2%.

Securities Exposure vs Regulatory Limits
~2% Current
15% Alert
20% Hard Stop
25% Buffer
40% Limit
Current exposure (~2%)
Internal buffer zone (25%)
SEC hard limit (40%)

Instrument Classification

BTC / Crypto Spot 0% impact
BTC / ETH Options (Deribit) 0% impact
Perpetual Futures 0% impact
Commodity Futures (Oil/Gas) 0% impact
US Treasuries Securities
IBIT / Equity ETFs Securities
Corporate Bonds Securities
Stablecoins (USDC/USDT) 0% impact

Monitoring Requirements

05 Service Provider Matrix
Function Provider Est. Cost Status
Legal (Cayman) Walkers / Maples / Ogier $50K-$100K To Engage
Legal (US) Proskauer / Seward & Kissel $150K-$300K To Engage
Transfer Agent Securitize $50K-$100K + ongoing To Engage
Fund Admin Citco / NAV Consulting $50K-$100K/yr To Engage
Auditor Cohen & Co / KPMG $50K-$150K/yr To Engage
KYC / AML Sumsub $30K-$50K/yr To Engage
Insurance Lockton / Aon $40K-$80K/yr To Engage
Smart Contract Audit Trail of Bits + Consensys $100K-$200K To Engage
06 Regulatory Timeline

Phased rollout from Cayman launch through global retail distribution across five jurisdictions.

Q2 2026 — MONTHS 1-3

Cayman Launch

  • Engage Cayman legal counsel (Walkers / Maples / Ogier)
  • Form AQ Yield Fund SPC with segregated portfolios
  • CIMA registration as Registered Mutual Fund
  • Deploy ERC-3643 token contracts + ONCHAINID
  • Smart contract audit (Trail of Bits + Consensys)
  • Onboard Securitize as transfer agent
🇰🇾 Cayman
Q3-Q4 2026 — MONTHS 4-9

Phase 2 Initiation

  • File US Reg D 506(c) — engage Proskauer / Seward & Kissel
  • Begin EU entity formation (Ireland ICAV or Luxembourg RAIF)
  • UAE ADGM application for FSRA license
  • Singapore MAS capital markets license application
  • CFTC CPO registration for US entity
🇺🇸 US Reg D 🇪🇺 EU 🇦🇪 UAE 🇸🇬 Singapore
Q1-Q2 2027 — MONTHS 10-15

Phase 2 Go-Live

  • US Reg D live — accredited investor onboarding via Securitize
  • MiCA authorisation expected — EU retail distribution begins
  • UAE ADGM license granted — Middle East distribution
  • Singapore MAS approval — Asia distribution
  • Secondary market listings (MERJ, MiCA MTF, Securitize ATS)
🇰🇾 Live 🇺🇸 Reg D Live 🇪🇺 Live 🇦🇪 Live 🇸🇬 Live
H2 2027 — MONTHS 16-21

Phase 3 — US Retail

  • File Reg A+ offering statement with SEC (up to $75M)
  • SEC qualification expected 3-6 months post-filing
  • US retail investor onboarding begins via Securitize ATS
  • Full global distribution achieved across all five jurisdictions
🇺🇸 Reg A+ Filing
2028+

Platform Phase — Third-Party Tokenisation

  • Open AQ platform for third-party fund managers to tokenise
  • Multi-jurisdiction compliance-as-a-service
  • Additional jurisdictions: UK (FCA), Hong Kong (SFC), Japan (JFSA)
  • Network effects and platform revenue streams
Platform
Confidential — AQ Capital

This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Regulatory pathways described are subject to change based on evolving legislation and regulatory guidance in each jurisdiction.