How Does Fairmint Work?
This article is for both founders and investors using Fairmint.
Fairmint is the software layer that lets companies issue private securities and manage their cap table entirely on chain. Instead of coordinating across lawyers, transfer agents, PDFs, and spreadsheets, everything — legal signing, investor compliance checks, and the cap table itself — runs through one platform. Every event is recorded on a privacy-preserving blockchain, and the issuer stays in full control of their offering at every step.
What Fairmint Solves
Traditional equity management is slow, fragmented, and expensive. Issuing securities means coordinating lawyers, transfer agents, and multiple platforms, with each round taking weeks and leaving your cap table scattered across spreadsheets, PDFs, and outdated records.
Fairmint replaces that stack with a single platform where the cap table is the source of truth, compliance is automated, and every equity event from a SAFE signing to a vesting milestone is recorded immediately and permanently.
How the Platform Works
The cap table lives on chain from day one. When you onboard, your cap table is initialized on the Open Cap Table Protocol (OCP), an open standard for equity records built on the same data format used by Cooley, Gunderson, Wilson Sonsini, and other leading US securities law firms. OCP runs on the Canton Network, a privacy-preserving blockchain designed for regulated financial markets. Only authorized parties including you, your shareholders, your auditors, and any regulators you grant access to can see your records.
Investors access your offering through a branded portal you control. You create an offering in Fairmint, set your terms and legal documents, and share an invitation link. Investors go to your own branded investment portal, not a Fairmint marketplace, where they review the offering, sign agreements digitally, and complete identity and accreditation verification, all in one flow.
Issuance is recorded atomically. Once you confirm funds, you trigger issuance and the cap table updates in the same transaction. No manual reconciliation, no lag, no partial states. Every subsequent event in a security's life including transfers, vesting, conversions, and exercises is recorded the same way.
What Fairmint Handles
Legal agreements: Built-in SAFE templates (based on YC's standard) or your own custom documents, signed digitally by investors during the investment flow
KYC, accreditation, and AML: Automated identity verification, accreditation checks, and anti-money laundering screening built into every investor onboarding
Compliance enforcement: Transfer restrictions, lockup periods matching regulatory holding periods, and holder limits enforced programmatically on chain
Cap table management: Import existing equity history, track all share classes and stakeholders, generate shareholder register PDFs, and run pro-forma scenarios
Equity grants: Issue stock options and RSUs to employees with built-in vesting schedules and automated lifecycle tracking
SEC filings: Built-in Form D filing support through a partner filing agent, plus state blue sky fee tracking
The Onchain Record Is the Cap Table
Fairmint's onchain record is the cap table, not a copy of one maintained elsewhere. Your records are always current, always queryable, and always exportable in standard OCF format. Because OCP is an open standard, your data is portable.
Fairmint has been an SEC-registered transfer agent since 2023 and has recorded over $1.5 billion in equity on chain.
Related Articles
Why Fairmint? The Vision Behind On-Chain Cap Tables — why we built it this way
Fundraising with Fairmint (Overview) — step-by-step how to run a round in the product
Onboarding & Setting Up Your Portal — get started in ~5 minutes
Need help? Reply in the chat — our team is happy to assist.
This article explains how to use the Fairmint platform. It is not legal, tax, or investment advice. Consult a qualified professional for questions about your specific situation.
