A blockchain-based trust company, Prime Trust, is offering a custody of all ERC-20 algorithm compatible tokens. Announced on Tuesday, this move will see to it that Prime Trust will go beyond its current service which accepts Ethereum (ETH) and Bitcoin (BTC) for crypto-retail and custody services.
Most of the security tokens developed on the Etherum blockchain have the protocol, ERC-20. It enables them to trade and exchange with others. As it is now, investors have to find out how to arrange disparate investments and safeguard their tokens. On the other hand, for cryptocurrency firms that report to U.S. Securities and Exchange Commission (SEC), this offer matters significantly. For cryptocurrency entities, such as exchanges and hedge funds, Prime Trust gives them the opportunity to comply with SEC’s requirements as a Qualified Custodian.
The Current Custody of Virtual Currencies
For playing the role of a security token custodian, it entails that Prime Trust will solve the cryptocurrency industry challenge. In truth, the nuances and quirks of lots of ERC-20 tokens have made holding them practically impossible. Many digital currency firms compel their investors to hold tokens in wallets, which are vulnerable to loss, hacking, theft, and other complicated legal problems. Now that Prime Trust is here, these investors can hold their tokens in the firm’s custody. The major target so far has been tokens issued as ERC-20 ICO (Initial Coin Offering) or STO (Security Tokens Offering). Also, they will receive updates and statements on their accounts.
How Prime Trust Works
To hold all these countless tokens, the company’s engineers engaged the developers of the algorithm and one of the authors of the ERC-20 standard. Held in Barbados, Prime Trust’s partner company, Polymath, recently hosted a conference. At the end of the conference, the participants agreed on the framework for the would-be industry innovation. Accordingly, Prime Trust welcomes all to interconnect via APIs and take advantage of different business models. Thus, taking custody of ETH, BTC, and ERC-20 compatible tokens is simplified. The trust company specifically listed a host of companies that are invited to leverage the business models. These companies include institutions, broker-dealers, hedge funds, ICO platforms, cryptocurrency exchanges, and funding portals.
The CEO of Prime Trust, Scott Purcell, expressed his happiness over the development. Purcell noted that the company is the first financial institution to hold ERC-20 protocol tokens, BTC and ETH in cold storage. In addition, the chief executive described that what Prime Trust has developed is “an engineering breakthrough.”
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