Feature
Sell without trusting
the other side.
The key moves only when the deal is complete. Policy-bound, quorum-verified transfer triggered by cryptographically attested conditions, not manual coordination.
The Problem
Every digital asset transfer today relies on someone you have to trust.
Whether it's a lawyer holding escrow, a smart contract oracle, or a counterparty's word, the transfer depends on trust. And trust introduces risk.
Escrow agents
A third party holds funds or assets during the transaction, adding cost, delay, and a new point of failure.
Smart contract assumptions
On-chain contracts can't verify off-chain conditions. The oracle problem means someone still has to be trusted.
Manual coordination
Settlement depends on humans confirming completion, creating gaps where errors, fraud, or disputes can occur.
The Lokblok Approach
Key access tied to verified conditions.
Transfer on Sale ties key access to verified transaction conditions. The key is reconstructed only when all conditions are cryptographically confirmed, no intermediary required.
The key reconstructs only when
How It Works
From defined conditions to verified transfer.
Conditions Defined in Policy
The seller defines the precise conditions that must be satisfied before the key can be reconstructed: payment confirmation, regulatory sign-off, counterparty approval.
External Systems Attest to Completion
Trusted external systems (payment processors, legal platforms, oracles) produce cryptographic attestations confirming each condition has been met.
Quorum Verifies the Event
A quorum of independent participants confirms the attestations. No single party can unilaterally trigger the transfer.
Key Reconstructed and Transferred
Once quorum is reached, the key is reconstructed inside secure hardware and transferred to the buyer. The process is atomic: it either completes fully or not at all.
Old Owner Loses Access
Simultaneously, the previous owner's access is revoked. There is no window in which both parties hold the key.
Context
Why Transfer on Sale exists alongside the standard transaction.
For most digital asset sales, a blockchain transaction is the right tool. Ownership transfers on-chain, the record is permanent and auditable, and both parties have cryptographic proof of what happened. That is how tokenised assets are designed to work, and it works well.
Transfer on Sale serves a different purpose. When two counterparties want to settle a high-value position without leaving a public on-chain record of the transfer, a standard transaction is the wrong instrument.
"Every on-chain transfer is visible. For an institution moving a significant tokenised position, that visibility is a market risk — the transaction itself signals the move to anyone watching."
Transfer on Sale moves the private key that controls the asset directly between seller and buyer, privately, with no on-chain footprint. The transfer itself is invisible to the market and visible only to the participants.
Standard transaction
On-chain. Permanent, auditable, publicly visible.
Transfer on Sale
Private key transfer. No on-chain record. Invisible to the market.
Subsequent activity
What the new holder does with the asset is entirely theirs.
What This Removes
The trust requirements drop to zero.
Escrow risk
No third party holds assets. The key doesn't move until conditions are met, enforced by cryptography, not a custodian.
Counterparty risk
Neither side can default once conditions are defined. The protocol enforces completion or prevents the transfer entirely.
Manual trust
No handshakes, no lawyers, no promises. Every condition is verified by cryptographic attestation and quorum.
Example Use Cases
Anywhere a deal needs to close atomically.
Real estate transactions
Property title and key access transfer only when payment clears and regulatory conditions are confirmed.
Tokenized assets
On-chain and off-chain asset transfers between institutional counterparties, without smart contract oracle dependency.
IP licensing
License access transfers on verified payment and contractual compliance. No manual handover.
Off-chain high-value digital transfers
Control of digital systems, accounts, or infrastructure transfers only when all acquisition conditions are verified.
Where It Applies
Institutional settlements that cannot afford a public footprint.
Large institutional positions
A fund manager liquidating a significant tokenised commodity holding, or an institution transferring a custody mandate, may not want the market to see the position move. Transfer on Sale settles the transfer privately between counterparties.
Vault and multi-asset transfers
Where a single private key controls an entire asset vault or multi-asset portfolio, transferring the key transfers everything it governs in one action — without executing individual on-chain transactions for each holding.
Custody and infrastructure handovers
When a custodian transfers a client relationship to another provider, or when a fund manager hands off operational control of a portfolio, the commercial arrangement may be built around key governance rather than individual token ownership. Transfer on Sale handles that transfer with the same hardware-enforced, compliance-gated protocol.
OTC settlement
Large over-the-counter digital asset deals between institutional counterparties are routinely negotiated off-exchange precisely to avoid market impact. Transfer on Sale gives those settlements a cryptographically secure, privately executed completion mechanism.
White Paper: Transfer on Sale, Technical Specification
How trigger conditions are cryptographically verified, quorum governance design, and comparison with alternative approaches.
Request White Paper