Token Operations

Comprehensive guide to all available operations for equity and bond security tokens.

Overview

ATS provides comprehensive operations for managing security tokens based on ERC-1400 and ERC-3643 standards:

• Common Operations: Mint, Force Transfer, Force Redeem, Pause
• ERC-3643 Operations: Freeze
• ERC-1400 Operations: Hold, Clearing, Protected Partitions, Cap

Common Operations

Mint (Issue) Tokens

Create new tokens and assign them to an account.

When to use: Initial distribution, employee grants, additional issuance

Requirements:

• ISSUER_ROLE permission
• Recipient must have valid KYC
• Recipient must pass control list checks
• Must not exceed max supply (if set)

How to:

1. Navigate to your token
2. Select Admin View (green)
3. Go to Operations → Mint
4. Enter recipient address and amount
5. Approve transaction

Force Transfer

Transfer tokens from one account to another on behalf of the source account.

When to use: Court orders, regulatory compliance, error corrections, institutional custody operations

Requirements:

• CONTROLLER_ROLE or PARTICIPANT_ROLE or PARTITION_RESTRICTION_WILD_CARD_ROLE
• Both sender and receiver must have valid KYC
• Must pass control list checks

Form Fields:

• Source Account* - Hedera account ID (0.0.xxxxx) or EVM address (0x...) from which tokens will be transferred
• Account to Transfer* - Destination account that will receive tokens
• Amount* - Number of tokens to transfer

How to:

1. Navigate to your token
2. Select Admin View (green)
3. Go to Operations → Force Transfer
4. Fill in the form:
   • Enter the Source Account to transfer from
   • Enter the Account to Transfer (destination)
   • Enter the Amount of tokens
5. Click "Submit" or "Transfer"
6. Approve the transaction in your wallet

Important: Source and destination accounts must pass all compliance checks (KYC, control lists, etc.).

Force Redeem

Redeem (burn) tokens from a specific account.

When to use: Regulatory compliance, mandatory buybacks, token recalls, bond maturity redemptions

Requirements:

• CONTROLLER_ROLE or PARTICIPANT_ROLE or PARTITION_RESTRICTION_WILD_CARD_ROLE
• Target account must exist

Form Fields:

• Source Account* - Hedera account ID (0.0.xxxxx) or EVM address (0x...) from which tokens will be redeemed
• Amount* - Number of tokens to redeem
• Redeem all amount after maturity date (Checkbox) - For bond tokens, redeem all tokens after the bond's maturity date

How to:

1. Navigate to your token
2. Select Admin View (green)
3. Go to Operations → Force Redeem
4. Fill in the form:
   • Enter the Source Account to redeem from
   • Enter the Amount of tokens to redeem
   • (Optional) Check "Redeem all amount after maturity date" for bonds
5. Click "Submit" or "Redeem"
6. Approve the transaction in your wallet

Note: For bond tokens, the "Redeem all amount after maturity date" option allows full redemption once the bond matures.

Pause Token

Temporarily halt all token transfers globally.

When to use: Emergency situations, security incidents, system maintenance

Requirements:

• PAUSER_ROLE permission

How to pause:

1. Navigate to your token
2. Select Admin View (green)
3. Go to Management → Danger Zone
4. Click "Pause Security Token"
5. Approve transaction

How to unpause:

1. Go to Management → Danger Zone
2. Click "Unpause Security Token"
3. Approve transaction

Effect: All transfers are blocked until token is unpaused. Minting and burning may still be possible depending on configuration.

ERC-3643 Operations

Freeze Account

Prevent an account from transferring or receiving tokens.

When to use: Suspicious activity, regulatory holds, dispute resolution

Requirements:

• FREEZE_ROLE permission

How to freeze (Option 1 - via Operations):

1. Navigate to your token
2. Select Admin View (green)
3. Go to Operations → ERC-3643 → Freeze
4. Enter account address
5. Enter amount to freeze (or full balance)
6. Approve transaction

How to freeze (Option 2 - via Control):

1. Navigate to your token
2. Select Admin View (green)
3. Go to Control → Freeze
4. Enter account address
5. Enter amount to freeze (or full balance)
6. Approve transaction

How to unfreeze:

1. Go to Control → Freeze (or Operations → ERC-3643 → Freeze)
2. Find the frozen account
3. Click "Unfreeze"
4. Enter amount to unfreeze
5. Approve transaction

ERC-1400 Operations

Hold Operations

Create temporary locks on tokens that can be executed or released.

When to use: Escrow, conditional transfers, payment holds

Requirements:

• Holder must initiate
• Sufficient unfrozen balance
• Hold must specify notary (can execute hold)

How to create a hold:

1. Navigate to your token
2. Select Holder View (blue)
3. Go to Operations → Hold
4. Enter:
   • Recipient address
   • Notary address (who can execute)
   • Amount
   • Lock time (seconds)
   • Partition (default or custom)
5. Approve transaction

Hold lifecycle:

1. Created: Tokens locked, cannot be transferred
2. Executed: Notary transfers tokens to recipient
3. Released: Notary returns tokens to holder
4. Expired: Hold expires, tokens automatically released

See Hold Operations Guide for details.

Clearing Operations

Two-step transfer process requiring approval from a designated clearing agent.

When to use: Regulatory oversight, trade settlement, compliance validation

Requirements:

• Clearing mode must be activated
• CLEARING_VALIDATOR_ROLE assigned to clearing agents
• Sender initiates, validator approves

How to use clearing:

1. Activate clearing mode (one-time setup):

   • Go to Management → Danger Zone
   • Click "Activate Clearing"
   • Approve transaction

2. Create clearing transfer:

   • Go to Operations → Clearing
   • Enter recipient and amount
   • Submit for clearing

3. Approve clearing (clearing agent):

   • Clearing agent reviews request
   • Approves or cancels the transfer

See Clearing Operations Guide for details.

Cap Management

Set maximum token supply to prevent over-issuance.

When to use: Fixed supply tokens, regulatory requirements

Requirements:

• ISSUER_ROLE or DEFAULT_ADMIN_ROLE

How to set cap:

1. Navigate to your token
2. Go to Management → Cap
3. Enter maximum supply
4. Approve transaction

Effect: Minting operations will fail if they would exceed the cap.

How to view cap:

• Go to token details
• Check "Maximum Supply" field

Permission Requirements

Operation	Required Role
Mint	ISSUER_ROLE
Force Transfer	CONTROLLER_ROLE, PARTICIPANT_ROLE, or PARTITION_RESTRICTION_WILD_CARD_ROLE
Force Redeem	CONTROLLER_ROLE, PARTICIPANT_ROLE, or PARTITION_RESTRICTION_WILD_CARD_ROLE
Freeze Account	FREEZE_ROLE
Pause Token	PAUSER_ROLE
Create Hold	Token holder (self)
Execute Hold	Notary address
Create Clearing Transfer	Token holder (self)
Approve Clearing	CLEARING_VALIDATOR_ROLE
Set Cap	ISSUER_ROLE or DEFAULT_ADMIN_ROLE
Activate Clearing	ISSUER_ROLE or DEFAULT_ADMIN_ROLE

See Roles and Permissions Guide for more details on role management.

Troubleshooting

"Account 0.0.XXXXX does not have Kyc status: Granted in the internal/external system"

This error occurs when attempting an operation (e.g., minting or transferring tokens) on an account that has not been KYC-verified. The account must be granted KYC status before it can participate in token operations.

Resolution depends on your KYC configuration:

• Internal KYC: Grant KYC by uploading a Verifiable Credential for the account. See Managing KYC and Compliance - Internal KYC.
• External KYC: Add the account to the external KYC list linked to your token. See Managing External KYC Lists.

After granting KYC through either method, retry the original operation.

Operation Guides

For detailed step-by-step instructions:

• Hold Operations - Detailed hold lifecycle management
• Clearing Operations - Two-step transfer process
• Corporate Actions - Dividends, coupons, splits, voting
• Managing KYC & Compliance - KYC verification

Next Steps

• Roles and Permissions - Grant access to team members
• Corporate Actions - Execute dividends and coupons
• Updating Configuration - Upgrade token functionality