Connect with us

Digital Securities

TokenSoft Launches New Security Token Standard

mm

Updated

 on

TokenSoft Launches New Security Token Standard

Here at securities.io, we believe that tokenized securities are the future of crypto.  While there will always be a place for utility tokens, they will eventually be supplanted as the most common tokens by their security counterparts.

Much as there are various standards that utility tokens are built upon, the same holds true for security tokens.

ERC-1404 : Simple Restricted Token Standard

Developed by TokenSoft, this new standard was recently announced by CEO, Mason Borda.  It is open-source and tailor designed to serve those operating under compliance requirements.  It is known as ERC-1404.

In their press release, Borda commented, “We’ve spent the past year gaining insight from issuers, top securities law firms and major exchanges to better understand their token compliance needs…Now, we’re excited to deliver a standard that comprehensively addresses those needs, and provides the tools necessary for issuers to adhere to global banking and securities laws.”

The token builds upon the popular ERC-20 standard by adding multiple additional features.  This is done through the ability to apply transfer parameters within a smart contract.

–          When tokens can be transferred

–          How many can be transferred

–          Conditions needed to allow transfer

These changes are achieved through simple lines of code as demonstrated in their announcement.

TokenSoft Launches New Security Token Standard

TokenSoft

Led by a duo of experienced professionals, TokenSoft is a promising company.  Their goal is simple: To help companies wishing to tokenize their securities along their path.  They are able to provide a launching platform that ensures security and adherence to enforced regulations.

CEO – Mason Borda

CTO – James Poole

The Competitors

TokenSoft is not the first company to venture down their path.  They stand next to other well-known names striving for the same goal.  Here are a few:

Polymath – ‘The Securities Token Platform.  Utilizes the ST-20 securities token standard.

Securitize – ‘Provides an end-to-end platform for issuers that are seeking to tokenize assets’.

Harbor – ‘A compliance platform for tokenizing private securities’.  Utilizes the R-token Standard

Each of these companies are actively laying the groundwork needed to allow seamless tokenization in the future.  As these trendsetters navigate the waters and create a blueprint on how to efficiently achieve their goals, look for an increasing number of companies to jump on board.

More to Come

As interest in security tokens soars, companies interested in creating one need a means to do so.  Companies like TokenSoft, and those discussed earlier are filling that need.  Through the creation of these token standards, they are building the foundation needed for the next step in the world of crypto.

Lawson Baker of TokenSoft understands this, and stated in their press release, “The future of security tokens requires compliance with relevant laws, interoperability, and a user experience that works for all skill levels…By supporting ERC-1404, token issuers, exchanges and wallets can deliver a great user experience to investors while ensuring compliance.”

ERC-1404 isn’t the first security token protocol, and it won’t be the last.

Spread the love

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.

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.