With the mainstream penetration of cryptocurrencies in global finance, the demand for “security tokens” is growing. Security Tokens are specifically used for a fundraising process in the booming trend of ICOs. In short, they are cryptocurrency tokens issued to investors participating in ICOs or other token sale events. Will Polymath answer the demand?
Polymath – The Securities Token Issuance Platform
Although security tokens continue to gain traction, they still face a hurdle in terms of regulatory intervention and scrutiny. Moreover, going through the regulatory process of launching a security token is a very cumbersome task for businesses.
Polymath is one such blockchain protocol which aims to streamline the process of launching security tokens. Polymath wants to bridge the gap between traditional financial securities and blockchain technology.
The platform transforms traditional financial instruments like private equity, stocks, bonds, and other programmable tokens. The programmable tokens operate on the blockchain platform, thereby making themselves more accessible, secure, and liquid.
The platform provides a unique ecosystem by getting all participants of the security tokens issuance process, together. This includes issuers, developers, investors, legal delegates, and KYC providers.
Overall, Polymath mitigates all the technical and legal challenges of issuing security tokens by streamlining the entire process.
Polymath’s Native Cryptocurrency Token POLY
The company’s blockchain protocol has got its own native cryptocurrency token POLY. Also, Polymath doesn’t have its own blockchain network. The POLY is an ERC-20 token on the Ethereum blockchain network.
All participants of the Polymath platform use the POLY tokens as a currency to perform all the operations. Some of the exciting use-cases are as follows.
- Token issuers use the POLY tokens to pay developers and legal delegates for providing token issuance services.
- Developers receive payments in POLY tokens for developing smart contracts.
- KYC service providers can also receive payments in POLY for getting investors verified.
- Investors use the POLY tokens to invest in other security tokens and also for paying the verification fee.
- Legal delegates can earn fees in POLY tokens for their consultation.
The Polymath team plans to use it own ST-20 token standard for issuers to launch their own compliant security tokens. Just like the ERC-20, Polymath aims to make the ST-20 a universal standard for security token offerings.
As a result, they wish to establish a benchmark for tokenization of traditional financial instruments like stocks, bonds, and other securities.
POLY tokens are available on several popular exchanges like Binance, Huobi, KuCoin, Bittrex, and others.
RISK DISCLOSURE
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
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