ICON aims to build a decentralized network that allows independent blockchains with different governances to transact with one another without the use intermediaries. ICON has recently released its own token specifications for the third-party market players interested in developing and commercialisation of blockchain-based assets and securities.
ICON’s IRC16 Standard
IRC16, a newly added token standard based on ICON’s public blockchain network, is designed to allow transparent issuance of tokenized assets and securities. It supports simple tokenization of various physical assets through a modular architecture for built-in compliance with legal regulations related to asset ownership and transactions.
- Check for Token Transfer: This function provides an interface that verifies whether token senders and recipients passed know-your-customer (KYC) and anti-money laundering (AML) procedures, and limits the number of investors that can initiate and receive token transfers.
- Token Control by Operator: This function supports compliance with regulations regarding fraud or the loss of personal encryption (private) keys. It allows tokens to be taken control of when the keys are lost or any kind of fraud occurs, as demanded by some regulations.
- Document Management: This function manages the legal documents that pertain to the rights and obligations of the participants. It stores and manages the appropriate legal documents in order to ensure that the rights and obligations of token issuers and investors are protected.
- Partition: This function allows token issuers to create partially fungible tokens and introduce lock-up periods into the tokens.
ICON also added that they hope security tokens will increase the liquidity of high-value assets by dividing them into pieces of easily tradeable tokens. ICON hopes that this will expand the size of existing investor pools and will turn securities into a more accessible market. The project development, specification updates and roadmap of ICON related to IRC16 can be found on the website (https://icon.foundation), while for technical perspective the IRC16 source code can be found on its Github page.
Earlier in January 2019, Ethereum unveiled a complete suite of security token standards under ERC-1400. The aim was to provide different entities with a wide range of asset building standards.