Polymath, which provides a decentralized protocol and platform for security tokens, with Cardano CEO and Ethereum co-founder Charles Hoskinson are cooperating on a project to develop the self-described “the world’s first security token blockchain.”
Polymath, which launched in August 2018 with five STOs, believes security tokens have far more potential for the global financial sphere than the most bullish investors realize. However, the current ecosystem is not established enough to accommodate this phenomenon as Ethereum was not purpose-built with regulations or compliance in mind.
Dubbed ‘PolyMesh,’ the yet-to-be-launched blockchain aims to inherently ensure compliance with government regulations when issuing digital securities. The new project focuses on KYC, AML, and other legalities, so if PolyMesh succeeds on its value proposition, it will, therefore, mitigate external risk factors for putting securities like stocks and bonds on the blockchain.
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Charles Hoskinson to play a major role
Polymath’s platform has seen a notable upswing in the number of projects using it for their token sales. According to the company, more than 120 security tokens were created using its Token Studio and are now available on the Polymath network.
Polymath has its own rules that require investors to verify their status as accredited investors before taking part in a security token offering. Earlier last year, the startup partnered up with Identity Mind for KYC (know-your-customer) and AML (anti-money laundering). Polymath also functions as a network where investors can post their ideas for new security tokens, and development teams can bid to win the contract to build them.
Charles Hoskinson, co-founder of Ethereum and Cardano, will take on the role of Polymesh’s co-architect. He commented on the news: “After co-founding Ethereum and Cardano, two of the most widely used blockchains in the world, I am looking forward to working on PolyMesh. There are quadrillions of dollars of financial securities, and building a blockchain to secure them is an incredibly exciting task.”
Trevor Koverko, co-founder of Polymath, added: “We’re incredibly excited to work with Charles on the world’s first purpose-built blockchain for security tokens. As the co-founder of both Ethereum and Cardano, Charles brings one-of-a-kind expertise to Polymesh, and is the perfect person to act as Polymesh’s co-architect.”