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Polymath Scraps Two Projects, Honing in on Vision for Digital Securities

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Polymath Scraps Two Projects, Honing in on Vision for Digital Securities

Polymath Coming into Focus

Under the watch of CEO, Kevin North, Polymath has seen 4 product initiatives scrapped within the past year. The latest two were recently announced, as the company attempts to focus their efforts on the development of their ‘Service Provider Marketplace’, and their ‘PolyMesh’ network.

There are generally only a few paths that companies have followed within the digital securities sector.

  1. Build and offer a comprehensive suite of services tailored towards investors and SMEs
  2. Develop a specialized service, and join forces with like-minded companies, offering complimentary services
  3. Create a marketplace which acts as a home for those companies resorting to the 2nd option

Through their service provider marketplace, Polymath has gained traction within the industry as the 3rd option. They offer a white-label tokenization service, which provides the necessary platform for an STO to be completed by an SME, while giving access to various companies and their niche services.

Lay-Offs

This particular culling of initiatives resulted in Polymath dismissing 10 employees. While this may sound like a negative, it is clear that Polymath has a clear vision, and is working to bring that into focus. With the digital securities sector being a nascent one, inefficient spending and misplaced efforts can wreak havoc on company development.

Through difficult decisions, such as this, Polymath will hopefully find itself on a more direct path to a productive future – benefitting, not only themselves, but all industry participants.

PolyMesh

The aforementioned actions were taken in large part due to the promise in the under-development, PolyMesh network. This is a blockchain based network, which the company intends to function as the first to be tailor built for digital securities.

While it serves the industry well, Ethereum is not built for a specific purpose. With the digital securities sector requiring unique structuring of tokens to ensure regulatory compliance, they believe that a purpose built network is the answer to greater industry adoption.

Upon announcing PolyMesh, in May, three main points were made, explaining why the move was an important one.

  1. A ‘robust and transparent set of financial primitives’
  2. A system to allow for not only growth, but separation between identity, asset ownership, and compliance.
  3. Incentive for participation

Polymath Announces ‘PolyMesh’ – A Purpose Built Blockchain for Digital Securities

Commentary

In making their announcement, multiple representative from Polymath took the time to comment. The following is what each had to say on the matter.

Thomas Borrel, CPO of Polymath, stated,

“We are excited to continue our efforts partnering with top-quality firms bringing real value to the world of security tokens…The Polymath Token Studio has allowed multiple companies to benefit from the automation and efficiencies of security tokens, and we look forward to the new experience and capabilities that Polymesh, the blockchain purpose-built for security tokens, will bring to market.”

Kevin North, CEO of Polymath, stated,

“We will not hedge…We discontinued 2 major initiatives when I joined the company last fall, and we are now dropping 2 more products that were in the planning stages at Polymath. The company is healthy, and we want to remain focused — Polymath’s vision is to become the technology leader that helps bring securities to the blockchain. We are doing this by providing a white-labeled tokenization platform and a security-purposed blockchain where all security tokens can reside.”

Polymath

Polymath is a Toronto based company, which was founded in 2017. This young company has managed to establish themselves as a leader within the developing digital securities sector. They were able to do so through their various token standards, and tokenization platform – leading to over 120 security tokens being distributed to date.

Company operations are currently overseen by CEO, Kevin North.

In Other News

Since the announcement of their ‘Polymesh’ network, Polymath has continued to make waves. In the process, they have found themselves in our headlines with regularity. Here are a few articles detailing recent events involving Polymath, and likeminded companies.

Polymath Clients to Benefit from CrowdEngine Services

Sum&Substance Introduced to Polymath ‘Service Provider Marketplace’

Blockpass to Offer Onboarding Services to Polymath Clients

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Interviews

Aaron Kaplan, CEO of Prometheum – Interview Series

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Aaron Kaplan, CEO of Prometheum - Interview Series

Prior to Prometheum you were the Founder of EquityArcade, a platform that enabled consumers to buy shares in video game startups. Can you let us know how your experience at EquityArcade transitioned over to Prometheum?

EquityArcade was a Reg CF equity crowdfunding platform that allowed consumers (investors) to invest in the future revenue generated from indie game funded on the platform. Reg CF is part of the JOBS Act, which also contains the Reg A+ crowdfunding rules. Prometheum uses Reg A+ as a means to allow the general public to invest in blockchain securities. All JOBS Act regulations relate to online equity crowdfunding. As a result, we have been able to leverage many of the experiences and lessons from EquityArcade in building Prometheum’s Reg A+ offering platform. 

 

Prometheum enables companies to raise capital by offering their own Smart Security Tokens (SSTs). Can you share with us how SSTs differentiate themselves from other industry standards such as STOs (Security Token Offerings) or DSOs (Digital Security Offerings)?

SSTs, STOs and DSOs are all different protocols that are attempting to solve the same problem. Until there’s complete regulatory clarity around certain critical components – including custody –  of the blockchain securities ecosystem, it’s not possible to conclude which protocol provides the best foundation.

 

What’s the process for a company to launch an SST?

An issuer looking to issue a SST will submit an application for an offering to Prometheum. At that point, the issuer will submit all relevant documents that will allow Prometheum to conduct the requisite due diligence in order to determine whether the company is qualified to issue an SST. Upon passing the due diligence process, the issuer will complete the Reg A+ offering circular and submit that document to the SEC for qualification. Once qualified by the SEC, the offering will be listed on Prometheum’s offering platform and begin their capital formation activities. When the stated amount of capital is raised, there will be a closing and distribution of the SST into the investors’ Prometheum brokerage account. Upon distribution of an SST, Prometheum’s issuance platform coordinates the multi-signature, multi-stage process that is used to place investors’ SSTs in either their Master or Personal Wallet. Once the distribution occurs, Prometheum will list the SST on our retail based (i.e. open to all investors) Alternative Trading System (ATS), and secondary market trading will begin in the issuer’s SST. 

 

What type of fees should companies expect from launching an SST and hosting it on your platform?

Our goal is to allow companies to raise up to $50m in the most efficient way possible:  faster, less expensive, and easier than any other legal capital raising method. In terms of direct fees, we plan on charging issuers a small percentage of the total amount they raise (1-3% dependent on the total raised).  Once a token has been distributed and is trading on the ATS, companies are charged a quarterly membership fee of $2,500 for maintaining their order book.

Indirect fees not charged by Prometheum can vary and are related to legal and prep for the creation of the Reg A documents, accounting, auditing, marketing, and other possible professional services.  

    

SST will be Reg A+ issued. For investors who are not familiar with this legislation and what does it mean? Could you explain the benefits?

Regulation A+ allows issuers to raise up to $50 million from the general public annually, and such securities, when issued, are freely tradeable on a secondary market. Reg A+ is really the perfect regulation for issuing blockchain securities as it meets the spirit that was initially conceived by the crypto community- it allows the general public to invest, and the asset is freely tradeable upon distribution but in a regulated manner (unlike many historical token investments). 

 

Tokens that are created on your platform will then be tradeable on a custom ATS (Alternative Trading System). Could you elaborate on how your ATS will operate?

On the surface, the ATS operates just like a traditional equities electronic market.  Every token has as order book representing supply and demand for that token – bids (what buyers are willing to pay, and the number of tokens they want) and asks (offers to sell, or what sellers are willing to sell for, and the number of tokens they want to sell). This order book is managed by the matching engine which uses an algorithm to arrange the bids and asks into a price, upon the price quote the engine then utilizes time priority, and ultimately “matches” buyers and sellers when they meet at the same price.  There is an online trading platform, similar to Etrade or Schwabb, which allows traders and investors to see the order book, look at charts, enter orders and see their account status and previous transactions. Through the use of omnibus accounts, other broker-dealers will be able to offer their customers access to SSTs. Our ATS intends to operate 2 sessions everyday, both 11 ½ hours long with two 30 minute breaks for settlement. When there is an executed trade, meaning an order between a buyer and seller is matched, the trade is written to the blockchain, as well as recorded to a database to ensure compliance with traditional record keeping.  

 

Are SST tokens launched on your platform tradeable on regular security token trading exchanges such as OpenFinance and tZERO?

SSTs are compatible with Prometheum’s ATS and work as both securities and utility tokens in the Prometheum ecosystem. It may be possible for SST issuers to create a bridge to other exchanges or blockchains by building smart contracts on the Prometheum Utility Blockchain. As the equivalent of a national market system for digital assets develops it will likely be necessary for digital assets to have the ability to trade across security token exchanges and alternative trading systems. 

 

What are Ember (MBR) tokens and what role do they play in this project?

The Ember SST fuels all SST transactions and allows holders to provide services at the protocol and application layers. Prometheum’s Ember token has both profit-making utility (work/access) and proprietary payment currency features. Ember provides the fuel for the Prometheum blockchain Network and demonstrates the versatility and value provided by a modern approach to using securities to transfer value in a decentralized, blockchain based environment. Ember is the first SST issued on the Prometheum Blockchain and sets the legal and technical precedent for further SSTs.

 

It seems like you are building everything from scratch, why not use an existing blockchain?

The Prometheum blockchain is required in order to ensure that regulatory requirements are met while also providing a viable method for the use of blockchain securities as utility tokens. This includes direct interaction with distributed applications as well as processes for moving blockchain securities in and out of brokerage accounts when a user wishes to trade them on the Prometheum ATS.

 

Is there anything else that you would like to tell us about Prometheum?

Prometheum is creating the market infrastructure needed for digital assets to go mainstream. When the SEC essentially declared that tokens were securities in the 2017 DAO report, such infrastructure didn’t exist, which meant that there were no compliant facilities for the issuance, trading, clearing, settlement and custody of token securities. Prometheum sought to fill that void and is creating the infrastructure that will allow the general public to invest and trade in digital assets, while also providing mechanisms for clearance, settlement and custody after trades are made. The Prometheum Network is meant to allow the general public to participate, which is required in order for digital assets to go from a new asset class to a mainstream asset class. 

To learn more visit Prometheum.

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Black Manta Capital and Tokeny to Launch Licensed ‘Multi-STO Platform’

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black manta

Multi-STO Platform

Today, a pair of Luxembourg based companies, Black Manta Capital and Tokeny, have announced the launch of a ‘multi-sto platform’.

This move represents the first licensed offering of its kind. The licensure needed to make the endeavour possible was awarded to Black Manta in early 2019, by the European regulatory body, BaFin.

BaFin Approves Germany based STO Platform by Black Manta Capital

The upcoming platform will operate with each company bringing unique skills to the table. They indicate that each will work within the following roles.

Black Manta

  • Compliance adherence
  • Investor Protection

Tokeny

  • Tech provider through a white-label tokenization platform

The Finer Points

The platform, itself, is geared towards serving not only professionals, but retail investors alike, with Europe representing the target market.

STOs, to be held through the platform, look to provide access to a variety of tokens based, not only on equity, but debt instruments and fractionalized ownership, as well.

For interested parties, investor onboarding is expected to begin in early November, 2019.

T-REX

The companies indicate that the launch of this platform will be facilitated through the adoption and use of framework known as the ‘Token for Regulated Exchanges’ or ‘TREX’.

The TREX framework provides a variety of capabilities including, but not limited to, the following.

  • Identity Management Systems
  • Validation Certificates
  • Transfer Management

Tokeny Releases TREX – The First Public Framework for STOs

Commentary

Upon announcing the launch of this new platform, representatives from each, Tokeny and Black Manta Capital, took the time to comment. The following is what each had to say on the development.

Luc Falempin, CEO of Tokeny, stated,

“Working with Black Manta Capital Partners allows the both of us to focus on what we do best. We provide the institutional grade tokenization solutions for every BMCP offering and this allows them to focus on what they do best, which is building their investor community.”

Christian Platzer, Co-Founder of BMCP, stated,

“Tokeny Solutions is one of the top global technology providers in tokenization. Having worked closely with the Tokeny Solutions team for several months, we can say: we speak the same language when it comes to the prospects for our industry and together we could not be more positive about the opportunities for security tokenization in Europe and around the world.”

Speaking with Luc

We were fortunate to have recently completed an exclusive interview with the CEO of Tokeny, Luc Falempin. In this discussion we learn more about, not only Falempin himself, but the near and long term goals of Tokeny as a whole.

Interview Series – Luc Falempin, CEO of Tokeny

Black Manta Capital

Operating out of Luxembourg, Black Manta Capital is a young company which was founded in 2018. Operating under licensure received by BaFin, Black Manta is working to establish themselves as an authority in the digital securities sector.

Managing Partners, Alexander Rapatz and Christian Platzer, currently oversee company operations.

Tokeny

Operating out of Luxembourg, Tokeny is a Fintech company which was launched in 2017. Above all, the team at Tokeny is working diligently to develop a suite of services meant to serve the digital securities sector.

CEO, Luc Falempin, currently oversees company operations.

In Other News

While both, Tokeny and Black Manta, have been hard at work in recent months to establish, not only themselves, but the digital securities sector as a whole, it was Black Manta that most recently caught our attention. This was through their recently announced partnership, which will see Canadian based DigiMax enter European markets through licensure held by Black Manta.

DigiMax Eyes European Expansion through Black Manta Partnership

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The SWARM Token Issuance Dapp Changes Everything

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SWARM Dapp is Active

Tokenization just got a lot easier thanks to the innovative minds behind the Swarm Dapp release. This revolutionary platform allows users to easily, and freely, create and issue security tokens at will. The news shows a shift in strategy from one of the most respected players in the market. It also demonstrates the start of a more robust issuance sector.

SWARM Changes the Game

This week, SWARM developers proved that they are serious about decentralization with their latest release of major upgrades to their smart contract suite. Built atop those smart contracts, the SWARM App by Swarm Capital is a market first in many ways. For one, security token issuance has long been a technically savvy business sector. Now that anyone can create security tokens, market innovation is no longer tethered to a person’s technical know-how. Basically, SWARM just changed the game in a major way.

Notably, Swarm Capital is the first provider to create and release a tokenization UI designed for third-party users. The company’s strategy follows the overall growing trend of B2B2B (businesses that sell services to businesses, that sell services to businesses) service providers taking the lead in the market.

The SWARM Token Issuance Dapp Changes Everything

Easy to Use

Swarm’s new Dapp includes a feature-rich UI (user interface) that simplifies the entire token issuance process. Notably, beginners need no training to navigate the free UI. The platform guides users throughout the entire process including classifying the token. The Dapp allows you to configure, mint, and issue tokens at no cost.

Advanced Users

Interestingly, Swarm Capital didn’t make the Dapp compatible with just newbies in the blockchain sector. The Dapp has a host of advanced features designed to service the needs of developers, consultants, and advisors. Blockchain experts can even program smart contracts directly within the platform.

The robust smart contract capabilities of the Dapp allow programmers to integrate a wide array of regulatory stipulations into the tokens. These features include the ability to add transfer restriction rules, account freeze, and contract freeze stipulations. You can even couple real-world assets to your security token via the platform.

Swarm White Label

Perhaps one of the best features of the new Dapp is the ability to white label the services. Service providers can use the open tools to build custom UIs for clients. By allowing other service providers to profit off of its UI, the company cements its positioning in the market moving forward.

How Swarm Dapp Works

The Swarm Dapp employs a set of pre-programmed smart contracts. These smart contracts create an alterable framework for companies to build upon. Basically, anyone with a little technical know-how can create a security token using the easy to follow instructions.

Swarm Hero

SWARM Token Issuance Platform

Once a user completes the token creation process, the token is then sent to the Ethereum Testnet. Here, developers can experiment with their new tokens in a safe and open environment. Once an issuer completes testing the token’s functionality, publishing the token to the Ethereum Mainnet only takes a few clicks.

Stake-to-Issues Tokenomics

Additionally, Swarm’s Stake-to-Issue tokenomics allows users to create and issue tokens with zero fees. Users simply stake their SWM tokens to initiate the contract. You can retrieve your staked SWM simply by completing a burn function with the security tokens.

SRC20 Token

The SRC20 token standard is a variation on the popular ERC-20 token standard. As such, the token retains the highest level of interoperability available in the market. Importantly, these tokens remain compliant throughout the entire token’s lifecycle, including during secondary trading.

Swarm’s Bright Future

From the looks of these developments, Swarm intends to be a staple in the tokenization community for years to come. As such, the company announced that all tokens issued on the platform will be compatible with upcoming swarm fundraising events. Also, developers seek to include a fundraising model in their next release. For now, Swarm just upped the ante in the security token sector.

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