SPV (Special Purpose Vehicle)
A subsidiary entity created for a specific, limited purpose, typically to isolate financial risk and hold specific assets separate from a parent company.
Full Definition
A Special Purpose Vehicle (also called Special Purpose Entity) is a legal entity created to fulfill a narrow, specific objective—usually to isolate assets and liabilities for financing, risk management, or regulatory purposes. In tokenized securities, SPVs are commonly used to hold underlying assets (real estate, company shares, etc.) while the tokens represent fractional ownership in the SPV, providing clear legal structure and investor protection.
Why It Matters
Every offering on Sails.to operates through an SPV structure—specifically, a series under our Series LLC. This means your investment is legally isolated from other offerings and from the platform itself.
If you invest in a real estate token, you own a piece of the SPV that owns the property—not a vague claim against the platform. This structure survived the 2008 financial crisis because it provides real, legally enforceable separation of assets.
Related Terms
Invest in isolated SPV structures
Your investment is protected by proper legal separation.
Start Investing