DigitalCapTable FAQ: Private SPV Reconciliation and Zero-Knowledge Verification

DigitalCapTable is a private ownership-information reconciliation and verification service for investments held through SPVs, funds and other intermediaries. It compares reports from participating organizations and uses cryptographic commitments and zero-knowledge proofs to verify specific results without publishing confidential cap tables.

Investors in large private companies often have difficulty verifying whether their investments through SPVs are backed by actual holdings in the underlying company. These investments may pass through multiple layers of SPVs, each maintaining separate ownership records.

DigitalCapTable compares reported holdings and allocations across these SPVs, identifies discrepancies or missing information and enables investors to verify their investments using zero-knowledge proofs without revealing confidential investor information or the underlying investment relationships.

No. DigitalCapTable does not issue tokens, transfer securities, settle trades or provide custody. It records and reconciles private market investment information. Cap Table Tokenization is the separate OnchainTA service for converting existing securities into tokens.

DigitalCapTable is designed for private companies, SPVs, fund administrators, transfer agents, broker-dealers and other financial institutions that participate in private markets, manage investment interests or sell interests in pre-IPO private companies through SPVs. Authorized representatives register and establish their authority. Individual investor registration and self-reported holdings are not included in the initial release.

An official cap table or shareholder register establishes the issuer’s direct registered holders. DigitalCapTable compares information reported by organizations across the layers between investment vehicles (SPVs) and an underlying private company. It does not replace official issuer or transfer-agent records.

No. DigitalCapTable checks whether submitted information is consistent and whether specified assertions are confirmed by the relevant parties. A valid zero-knowledge proof verifies a defined computation against committed records. It does not independently prove that shares exist or that the reporting party has legal title.

An authorized SPV representative registers through OnchainTA, completes organizational and authority verification and submits the organization’s holdings or allocation information. The reporting data and related documents stay private. Authorized counterparties may confirm the corresponding relationship.

Yes. Private company investments often involve multiple layers of SPVs. For example, one SPV may invest in several other SPVs, while another SPV may receive investments from multiple entities. These relationships can create complex ownership structures, making it difficult to determine how much of an underlying private company's securities are represented by each investment.

DigitalCapTable tracks these relationships and reconciles reported holdings and allocations across multiple SPVs. It prevents the same holdings from being counted more than once and identifies discrepancies or missing information, while keeping the underlying ownership records confidential.

An ownership attestation (or a counterparty attestation) is a confirmation by one party of the investment holdings or allocations reported by another party.

For example, suppose SPV A reports that it owns 10,000 units in SPV B. SPV B independently confirms that its records show SPV A holding 10,000 units. DigitalCapTable compares these reports and records whether the holdings match.

This process helps verify investment relationships across multiple layers of SPVs and identify discrepancies between their records. DigitalCapTable uses zero-knowledge proofs to allow verification of these results without revealing confidential ownership information or the identities of other SPVs in the investment structure.

An attestation confirms agreement between the parties' reported records. It does not independently establish legal ownership.

Yes. DigitalCapTable will have a publicly accessible verification interface where investors can verify their investments using a verification code provided by the SPV or other entity from which they purchased their securities, provided that entity participates in DigitalCapTable.

Investors can use the verification code to confirm their reported holdings without registering or connecting a digital wallet. However, DigitalCapTable is not a public ownership registry. SPV cap tables, investor identities, ownership relationships and other confidential financial records remain private and are not publicly visible.

No. Organizations can use account-based workflows, and the platform handles blockchain anchoring. Recipients who open a shared verification link do not need a wallet simply to check the limited report.

DigitalCapTable uses Ethereum to store zero-knowledge proofs that allow investors and other authorized parties to verify reported ownership information without revealing the underlying records.

All confidential information, including SPV cap tables, investor identities, securities holdings, investment relationships and financial records, remains securely stored off-chain.

Only cryptographic proofs and the limited technical information needed to verify them are recorded on Ethereum. This allows investors to verify their investments while protecting the privacy of everyone involved.

DigitalCapTable checks new submissions and reconciles reported holdings and allocations up to four times a day when information changes. Each verification report includes the date of the records used, so investors know when the information was last verified.

DigitalCapTable may use EDGAR and Form ADV material as private reference evidence for identity and relationship research. A public filing does not automatically become a verified participant statement, and no public graph is generated from those filings.

The initial release can accept optional, confidential investor-holder details supplied by an authorized organization. It does not independently identify or verify every ultimate investor, provide an unrestricted investor lookup or deduplicate individuals across all SPVs. Any finding is limited to the records supplied and the checks completed.

Yes. DigitalCapTable will allow investors to verify their reported holdings using a verification code provided by the SPV or other entity from which they purchased their securities. Investors can verify their investments without revealing confidential ownership records, the identities of other investors or the underlying SPV relationships.

In a future release, investors will also be able to enter their own allocation details and compare them with the information in the verification report.

No. DigitalCapTable does not value private companies, calculate NAV or investor returns, model carried interest or waterfalls or recommend investments. It focuses on reconciling and verifying reported holdings and allocations.

No. An organization’s participation in DigitalCapTable does not appoint OnchainTA as its transfer agent. Transfer agent services for tokenized securities require a separate engagement and defined responsibilities.

DigitalCapTable is in development. OnchainTA will announce its availability and the features included in the initial release.

No. DigitalCapTable maintains private ownership and investment-relationship reports. It provides public access only to the verification interface, where someone holding a participant-shared link can check the limited report and associated proof. It does not publish a searchable cap table, private graph or investor roster.

DigitalCapTable publishes zero-knowledge proofs and the cryptographic information needed to verify them on Ethereum. These proofs allow investors to verify reported securities holdings and allocations without exposing confidential information.

SPV cap tables, investor identities, securities holdings, investment relationships and other sensitive records remain securely stored off-chain and are never publicly visible.

An investor receives a verification code from the SPV or other entity from which they purchased their securities. The investor enters this code into DigitalCapTable to verify the reported investment and its underlying allocation using zero-knowledge proofs.

The verification confirms that the reported information has been checked against the records of participating entities, without revealing confidential SPV ownership structures, the identities of other investors or sensitive financial information.