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Polymath Proves DEX Security Token Concept

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Polymath Proves DEX Security Token Concept

The security token launch platform Polymath recently partnered with the decentralized exchange (DEX) Loopring. The partnership allowed Polymath to prove that their ST-20 tokens can remain compliant in secondary markets. The test results showcased this ability as the developers completed their tests successfully.

Two tests were conducted. Both tests involved trading an ST-20 token with a “wrapped ETH” token. Wrapped ETH tokens are ETH wrapped in the ERC-20 protocol. The first test attempted to exchange the tokens with all the necessary regulatory requirements met. This test completed as planned. The next test was similar but developers purposely left out certain compliance requirements. This test failed to complete.

Transfer Management Modules

The tests prove Polymath’s ST-20 tokens function properly on DEXs. Compliance on DEXs is possible through the integration of special transfer management modules. Think of these protocols as a third party verification layer built into your ST-20 token. Prior to the transfer of any ST-20 token, the transfer management module requires verification.

Transfer management modules work as mini regulators for ST-20 tokens. Only after these modules approve a transaction can the token transfer. Polymath’s ST-20 protocol embeds regulatory compliance regulations directly into the tokens smart contract programming.

Polymath via Craft.co

Polymath via Craft.co

Speaking on the success of the tests, the Vice President for Marketing, Graeme Moore explained the benefits gained from opening up security tokens to DEXs. He described how security tokens are more efficient, secure, and cost less to institute. He argued that security tokens make it easier for companies to meet compliance standards when compared to traditional securities.

Polymath

Polymath entered the market in 2017 with the goal of simplifying the token issuance process. The platform is based out of Saint George, Barbados and lists Chris Houser as the founder.  Polymath is a leader in the security token sector. The platform is one of the main security token issuance platforms in the space.

ST-20

The firm’s ST-20 protocol functions in a manner similar to Ethereum’s ERC-20 and ERC-1400 token standards. ERC-20 tokens are the most popular type of token in the cryptomarket at this time. Erc-1400 tokens are security tokens that operate on the Ethereum blockchain. ST-20 tokens borrow the best features from both of these standards.

Loopring

Loopring is a 100-percent open-source decentralized exchange. The platform features a powerful user interface and trading tools. The firm’s focus on an exceptional UX is what made their platform the perfect choice for Polymath’s project. Additionally, Loopring is available in a mobile app.

DEX

Decentralized exchanges are the natural evolution of the cryptomarket. These exchanges function on a peer-to-peer premise which greatly reduces the risk of hacked or stolen funds. Analysts predict a stark rise in the number of DEXs in operation over the coming months.

Polymath ST-20 Continues to Expand

Polymath’s latest test is sure to bolster the firm’s already excellent positioning in the market. Analysts continue to point to liquidity as the main choke point for further security token adoption. The inclusion of DEXs could change this situation in the near future.

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David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Security Token News

BitBond Finance BmbH STO Hits €2.1 million

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BitBond Finance BmbH STO 2.1 million

The enterprise lending solutions provider, BitBond Finance concluded its STO this week. The public crowdfunding event officially started in March of this year.  In total, BitBond secured €2.1 million in funding from the STO. Interestingly, this event was the first regulated STO held in Germany.

Now, BitBond seeks to expand its platform’s service to include a host of other digitized products. These products are first to include tokenized bonds. Tokenized bonds, much like tokenized shares, utilize blockchain’s efficiency to reduce delays and costs associated with transactions.

Global Response

The STO propelled BitBond into the spotlight. The media coverage alone was impressive with the company receiving over 1000 articles covering the event. Unsurprisingly, BitBond’s STO saw participation from 87 countries. Most of which, the firm has issued loans in.

Full Compliance

Earlier in the year, the German securities regulator, BaFin, approved BitBond’s application. As one of the first platforms to be licensed, BitBond represents a shift in the traditional business systems employed. As part of the approval, the platform gained an International Securities Number. This number allows BitBond to remain compliant across borders. This is critical to the company’s all-inclusive strategy.

BitBond via Homepage

BitBond via Homepage

BitBond Finance Investors Benefits

Investors received BB1 tokens for their contributions. Token holders receive a profit share from the company’s new platform. According to STO details, investors receive 4% per annum to start off with. After a specified time, these returns will go up to as high as 8%. In total, 60% of BitBond’s future profits are earmarked for investors.

BitBond Finance

BitBond entered the lending market in 2013. At that time, it was among one of the first instant lending platforms to offer services worldwide. The company currently issues €1 million in loans a month. Now, BitBond intends to leverage its positioning to enter into the tokenized bond market in a major way.

BitBond will issue tokenized bonds using its own proprietary software. As part of the new licensing, the company handles, clearing, settlement, and custody of these digital assets. Tokenized bonds clear much faster than traditional bonds. For comparison, tokenized bonds can clear in hours, versus days. Now investors have a better alternative to consider.

BitBond’s lending platform has seen great success to date. The platform utilizes a blockchain-based peer-to-peer protocol to facilitate near-instant loan approval. The company provides access to funding to medium and small-sized businesses. The speed and global reach of the platform were previously unimaginable prior to the advent of blockchain technologies.

Traditional Financial Institutions

BitBond also works with traditional lending institutions. Earlier in the year, the firm partnered with a German online bank to send funds internationally. The program was a huge success which helped cement BitBond as a major player in the tokenization marketplace.

Maximizing leverage

BitBond has shown that it has a strong understanding of the global marketplace and how blockchain technology can increase efficiency. More importantly, the firm continues to be a pioneer in the digital economy. You should expect to hear more big developments surrounding this platform in the coming weeks.

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DigiMax & Entoro to Collaborate as Advisors on Digital Security Offering

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DigiMax & Entoro to Collaborate as Advisors on Digital Security Offering

Collaboration

In the upcoming Leonovus Galaxa STO, a pair of promising companies have decided to collaborate as co-advisers. This would be United States based Entoro and, Canada based, DigiMax.

With a mutual goal shared between the companies, this collaboration was undertaken to capitalize on the strengths and weaknesses of each company.

U.S. versus Global

In their announcement, the companies indicate that, while Entoro has much to offer, their experience lies within the confines of the United States. DigiMax, on the other hand, has experience on a more global scale.

Between the two of these companies, Leonovus stands to benefit from a versatile, and competent, team of advisors. The companies note that, beyond this perk, the collaboration will allow for future referrals between one another, as their client base requires it.

Commentary

In announcing their collaboration with one another, representatives from each, Entoro and DigiMax, took the time to comment. The following is what each had to say on the matter.

Chris Carl, CEO of DigiMax, stated,

“We are excited to be partnering with Entoro to assist one another in advising and funding our collective issuer clients…We believe that Entoro is the definitive leader in providing proper advisory services for issuers of digital securities in the United States and this is the kind of highly diligent and compliance-oriented company that DigiMax seeks to partner with. We believe there are many synergies to be gained for each of our companies from this formal collaboration with most of these benefits accruing to our clients.”

James C. Row, Managing Partner of Entoro Capital, stated,

“We view DigiMax as a global leader in bringing awareness of the importance of regulatory compliance to every step in the process of companies issuing digital securities and we are impressed with the global brand that DigiMax has built. We see a great deal of opportunity for both of our companies to accelerate as a result of this collaboration agreement. We have a high appreciation of the professional level of conduct by DigiMax from our observations working with them on our first client tougher.”

DigiMax

DigiMax is a Canadian company, based out of Toronto, Ontario. This young company has developed a suite of services built to facilitate capital generation events, such as STOs and DSOs.

CEO, Chris Carl, currently oversees company operations.

Entoro

Operating out of Houston, Texas, Entoro functions primarily as an investment bank. Since launch, Entoro has expanded their services to facilitate blockchain ventures and digital securities.

Managing Partner, James C. Row, currently oversees company operations.

In Other News

Both, DigiMax and Entoro, have found themselves as regulars in our headlines. Over the past few months, each of these companies have made positive developments, as well as found themselves working on the same project. Check out the following articles to learn more about these events.

DigiMax Designated ‘Exempt Market Dealer’ by OSC

DigiMax to Consult During Leonovus Security Token Offering

Entoro to Act as Placement Agent in Upcoming Leonovus ‘Galaxa’ STO

Entoro Eyes Secondary Markets Through Partnership with Unicorn

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Will Facebook Subsidiary, Calibra, See the Light of Day?

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Will Facebook Subsidiary, Calibra, See the Light of Day?

The Announcement – Calibra

Facebook announced a pair of tokens recently. The project, which is being spearheaded by Facebook subsidiary, Calibra, will see both a stablecoin, and a security token, released.

While the stablecoin is meant to provide a global consumer base with an efficient means of transferring value, the security token facilitates project governance, and the development of a cash reserve.

Due to the potential of this project to significantly impact global currencies, and the financial system, the project has received much backlash, to date.

True Suspicions

Upon initially announcing the project, many suspected that the world’s greatest population of humans, India, would not be eligible for participation. This suspicion was born from the on-going battles within the country, between blockchain advocates and central banks.

As suspected, Facebook and Calibra have since verified these suspicions by stating the project will not launch in regions where such currencies are outlawed. They do remain hopeful that perspectives may change in the future.

Alexandra Voica, Facebook representative, states, “Calibra will respect the legislation”, “But we are looking to work with regulators to see if the legislation can be updated”.

Meeting with Congress

On July 16th a Congressional hearing will be held, followed by a similar hearing in front of the House Financial Services Committee on the 17th. The main focus of these hearings will be the testimony of Calibra representative, David Marcus, as he discusses the project and two tokens to be released.

After making their intentions known to the public, Facebook and Calibra were greeted with a response of fear and outrage by government authorities. While some point to Facebooks past track record regarding privacy lapses as a main concern, others see Libra for what it could potentially be – a competitor to the USD.

Whatever the case may be, this hearing will provide Facebook with the opportunity to give the answer Congress is looking for. Now is the time to allay any fears that regulators may have regarding the project.

Market Response

While there are surely a plethora of factors driving the price trajectory of Bitcoin, the outcome of the congressional meeting regarding the Calibra project weighs heavy.

Anticipation of these meetings has been met with a swift decline in overall marketcap and prices in the days leading up to it. Time will tell, but most suspect a positive outcome of these meetings will be met with a positive uptick in pricing. A positive outcome is, however, far from a sure thing.

Presidential Musings

Tweets discussing cryptocurrencies are typically white noise. There are an exorbitant amount of industry players always weighing in on the state of the industry. However, when the POTUS begins tweeting on the subject, people listen.

Whether you are a fan or a detractor of the POTUS, the fact that cryptocurrencies have captured the attention of the highest levels of government speaks volumes to the development witness within the industry in recent years.

Satisfaction

Before the meetings with Congress ensure, Facebook and Cablira have already made it clear that they will not be launching the product until the authorities are satisfied with the projects structuring.

In his prepared testimony for the hearings, David Marcus writes the following,

“The time between now and launch is designed to be an open process and subject to regulatory oversight and review…We know we need to take the time to get this right. And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.”

While there may be unavoidable delays due to hearings and potential restructuring of the project, the fact remains that with the combined clout and influence of the companies involved in this project – Facebook, VISA, PayPal, UBER, MasterCard, etc. – it is hard to imagine Calibra failing.

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