Netbasis Technology Stack
Netbasis core technology platform, featuring a unique security symbolic identifier, stands out for its ability to act as a key parameter in accessing and managing a large data repository. This technology, underpinned by the NetID framework, enables the Netbasis system to meticulously track corporate actions and other tax basis adjustments for any given tokenized asset or digital security. The strength of this framework lies in its capacity to link a security’s identity consistently with its corporate actions, dividends, and pricing events across the company’s lifespan. Unlike public financial market identifiers such as ISIN, CUSIP, ticker symbols, and legal names, which often change during corporate actions, NetID maintains continuity and tracks these changes effectively. This includes the ability to track and connect traditional securities and digital ones.
Netbasis’ distinctive capability to interlink all digital and traditional exchange markets, encompassing the tax lot accounting methodology of pricing, dividend, and corporate actions through a proprietary identification system, creates a comprehensive “taxonomy” for tracking cost basis adjustments. This approach is particularly effective in adapting to dynamic changes in global markets, offering a robust and integrated solution for tracking and understanding the impact of market events on securities.
Key Capabilities
1. Tokenization Expertise
Netbasis delivers exceptional tokenization capabilities, managing tokenized assets with a strong focus on compliance and transparent, accurate reporting. Our platform ensures precise basis adjustments and the effective handling of corporate actions, including complex fractional adjustments and calculations adhering to the de minimis rule. We address the complexities of wash sale violations, qualified dividend reporting, and return of capital, maintaining rigorous regulatory compliance.
2. Comprehensive Platform for Tax Compliance
Netbasis provides a comprehensive platform designed to manage the intricacies of tax compliance in the digital asset realm. Our platform automates cost basis adjustments, ensuring that events such as hard forks and airdrops are seamlessly integrated into tax calculations. With sophisticated tools for verifying and validating transactions, users can confidently manage their tax obligations across a variety of digital assets.
3. Verification Capability for 8949 and 1099-DA Transactions
Our robust Verification Capability enhances compliance by accurately verifying and validating transactions related to IRS Forms 8949 and 1099-DA. Engineered to efficiently handle millions of transactions, this system ensures timely validation of return information while managing complex sales, transfers, token exchanges, hard forks, and airdrop events. IRS personnel can leverage Netbasis' proprietary database to compare taxpayer information against submitted gain/loss returns, ensuring valuations align within an acceptable range, thus improving compliance and accuracy.
Netbasis is a tokenization‑ready, sFTP/API‑multi versatile managed service platform that automates corporate‑action processing, preserves multi‑lot and fractional accuracy, and maintains continuous, audit‑grade cost‑basis records across wallets, exchanges, custodians and blockchains. Designed for Exchanges, investment institutions, custodians, and RWA issuers, Netbasis supports multi‑jurisdiction tax methodologies and reporting frameworks (CRAF/CARF, DAC 8, IRS) to meet evolving global compliance demands.
Key Features
Tokenized Corporate Actions Automation
Auto-apply stock splits, corporate spin‑offs, mergers, split offs, ROC, deferral loss/wash sales, dividends (qualified/ordinary), rights issues and complex event chains with lot‑level updates and full provenance.
RWA Token Cost Basis
Rules for fiat buys, crypto‑for‑RWA trades, fee capture and tokenized real‑estate proportional ownership via K1 cost basis adjustments.
Fractional & Multi‑Lot Precision
High‑precision lot accounting; no rounding drift for fractional assets.
Automated Retail Tax Reporting
Pre-populate IRS Form 8949 using per‑wallet (wallet‑to‑wallet) accounting and generate other jurisdictional individual tax forms — supporting pooled/weighted‑average methods as well as FIFO, LIFO, HIFO and per‑wallet lot‑matching.
Multi‑Jurisdiction Tax Engine
Configurable sovereign tax treatments (capital gains vs. ordinary income, withholding, VAT/GST, holding periods, trader/inventory rules) with versioned rule packs and sandbox testing.
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