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.
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 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.
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 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.
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.
TokenSoft Launches Major Wallet Upgrade
This week, the SEC-regulated security token issuance platform, TokenSoft introduced a major upgrade. The new functionality comes in the form of a self-managed wallet for traders. The revamped system promises to be an easy-to-use interface coupled with advanced safety measures. Notably, the upgrade falls in line with TokenSoft’s recent expansions in the market.
Importantly, the new wallet features a less technical user interface. As such, users can easily maintain and manage investments directly from the wallet portal. Additionally, the new wallet integrates a host of regulatory-compliant safety measures, most similar in nature to Ethereum’s ERC-1404 protocol. Also, the wallet includes benefits for issuers as well. For example, there is built-in reporting to simplify auditing systems. Additionally, users receive automated dividend distributions, which also reduces transaction costs.
ITokenSoft added some important security updates to their wallet as well. For accounts that hold over $1 billion in investments, a new Multi-signature system is available. The system utilizes a key mannequin to provide the highest level of protection for your digital assets. Multi-signature wallets provide more protection than traditional wallets. Mainly because there are multiple keys required to complete a transaction.
Discussing the upgrade, TokenSoft CEO, Mason Borda described the excitement surrounding the project. He explained how the new wallet pairs a “safety package” with a simplified UX. This simplification of the STO process is sure to benefit the firm’s 100,000 registered traders.
Additionally, Jordan Davis, Director of Enterprise, described the effect of the upgrade within the financial markets. He stated that these new features apply pressure on traditional financial institutions to reply with a similar product. In turn, all investors benefit because of the new administration instruments. Davis envisions a day where you can easily choose what providers have access to your account, as easy as you choose Netflix shows to watch.
Last Wallet Upgrade
TokenSoft’s last major wallet upgrade came in January 2019. At that time, the firm announced the launch of its Knox Wallet. Impressively, the Knox Wallet was one of the first mobile, cold-storage solutions for securing digital securities.
TokenSoft entered the market in 2017 with the goal to simplify the issuance and management of digital securities on the blockchain, at scale, and within compliance. The San Francisco-based firm currently offers a full suite of security token and tokenization services. Since its inception, the company continued to gain popularity. Today, TokenSoft is one of the most recognizable names in the market.
In December, the firm’s subsidiary, DTAC LLC registered with the SEC as a Transfer Agent. Importantly, the firm also partnered with Ex- Israeli military cybersecurity firm – HUB Security this month. HUB now provides TokenSoft advanced end-to-end encryption protection on USB and Bluetooth devices.
TokenSoft Gains Momentum
TokenSoft continues to make headlines across the sector for its innovative approach to the market. The firm consistently advances its functionality and positioning. You can expect this latest upgrade to further cement TokenSoft as an industry leader.
TokenSoft Partners with Ex-Military Cyber Firm Hub Security
This week, the token issuance platform, TokenSoft made major upgrades to the security of its systems via a partnership with Israel’s ex-military cyber firm Hub Security. The maneuver gives Tokensoft access to some of the most advanced security features in the world. As such, the partnership bolsters the firm’s market positioning in a major way.
Discussing the new partnership, Mason Borda, TokenSoft’s CEO explained his firm’s dedication to customer security as a key priority. Additionally, he spoke on how the current state of the market lacks access to institutional-grade technology solutions for security tokens. Borda stated that his firm was “delighted” to partner with such a reputable security service provider.
Consequently, Tokensoft now offers users top-tier, military-grade protection for their tokens, keys, and assets. The integration gives Tokensoft the most advanced key management solution available in the market today.
Specifically, clients of TokenSoft’s transfer agent, DTAC are now privy to military-grade cybersecurity tactics. These security upgrades include FIPS140-2 Level 4 protection. On top of this protection, TokenSoft now offers a combination of hardware and software solutions to keep your tokens safe. These features include a multi-signature vault, a hardware firewall, and access control. Notably, the platform also integrates a neural network learning system designed to anticipate cyberattacks
Hub Security’s miniHSM solution provides governments, militaries, and companies end-to-end encrypted USB and wireless Bluetooth connectivity. This strategy creates a cryptographic environment for the whole lifecycle of digital assets. Developers believe this approach will help curb attacks from organized crime and hackers in the future.
Additionally, TokenSoft now gains access to Hub’s management solution. This suite of products includes Hub Security’s HSM device and independent OS for the encryption, management, and distribution of keys.
Speaking on the development, Eyal Moshe CEO of Hub Security touted the reasoning behind an end-to-end approach to the development and delivery of hardware and software components. He described why this strategy provides the highest level of security throughout the entire product lifecycle. Interestingly, he pointed out that the Covid-19 pandemic prevents people from “operating the on-premise security systems that controls large amounts of assets.”
Tokensoft entered the market in 2017 with the goal to simplify the processes involved for companies seeking to issue and manage digital securities on the blockchain, at scale, and within compliance. Recently, the firm acquired a stake in an SEC-regulated firm in a move that allows the company to operate as a registered broker-dealer in the US.
Hub Security entered the market on Nov 1, 2017. The firm offers hardware security solutions for regulation, privacy, fintech, cloud, and blockchain systems. Specifically, the company specializes in blockchain, cybersecurity, financial services, FinTech, information technology, and privacy products.
TokenSoft – Security First
TokenSoft is now ready to continue on its path towards tokenizing the global markets. This company made the right move when it decided to beef up its security via Hub. Now, the platform can offer its users the highest level of protection available. This added protection is critical when you consider the number of attacks these platforms continue to encounter. Hopefully, the new security measures will prove effective at protecting users tokens in the future.
Blockpulse – Lemonway Receive Registration from ACPR Banque de France
This week, the French tokenization startup Blockpulse received registration from the ACPR Bank of France. The regulatory approval allows Blockpulse to move forward with its tokenization platform. Importantly, the registration makes Blockpulse the first STO platform to achieve registration from French financial regulators. Now, French investors have access to all the benefits provided by tokenized securities
As a registered STO platform, Blockpulse gains significant rights in the marketplace. For one, the registration with ACPR Banque de France allows them to add functionalities concerning the Euro. Specifically, the registration allows Blockpulse to manage euro payments for financial instruments, transfers, and token issuances.
In a recent interview, Blockpulse COO Marien Irzykiewicz spoke on his firm’s achievements. He described how the company registered at ACPR Banque de France with its partner, Lemonway, to bring the concept to reality. Importantly, Lemonway is a leading European digital payment solution provider for investment platforms.
The partnership allows the firm to simplify its business systems, For example, the strategy provides the firm the ability to manage both cash and securities flows on the same blockchain. Additionally, the company plans to automatize critical actions through the use of smart contracts. These actions could include payment disbursements, investor verifications, and token issuances.
Blockpulse entered the market in 2018 with the goal to create an all-in-one box of tools to better serve the STO community. Today, this privately owned company focuses on solutions to raise funds, associate employees and manage investors. Notably, French companies can manage their fundraising in a manner that was previously not possible using the platform. As such, the platform allows companies to create legal documentation, electronic signatures, online payments, cap tables and registry of share movements directly.
For its part, Lemonway provides Blockpulse with top-tier KYC / LCBFT services. Recently, Blockpulse developers described the partnership as a success. They explained that the partnership brings more liquid management to the market. Also, it ensures that Blockport meets all the EU’s stringent securities regulations.
At this time, Blockpulse is only available to French residents. The company’s CEO stated that the firm intends to “expand in the European Union through Benelux and Spain” in the coming months. For now, investors outside of France can participate in sales, but only meeting pending regulatory restrictions.
French Pivot to Blockchain
As of last year, French regulators began an open policy towards STO integration. Notably, in September 2019, the French Central Bank Governor, Villeroy de Galhau, stated that the bank was observing tokenized securities with “great interests.” Earlier in the same year, Societe Generale, the third-largest bank in the country, issued a €100 million tokenized bond. This latest registration demonstrates that regulators are ready to push blockchain integration to new heights.
Feel the Blockpulse
Blockpulse receiving registration from the ACPR Banque de France is a huge step forward for the entire EU market. The French STO sector could use this momentum to catch up to its EU counterparts in the coming months. As it stands today, the company has the positioning to become the premier STO platform in the country.