NEO Global Development (NGD) is aiming towards to prepare for a futuristic economy where securities and blockchain merge. It has announced the formation of tentatively named Digital Asset Alliance (DAA). It is a consortium of participants from various industries including liquidity providers, KYC/AML providers, issuance platforms, law firms, and projects. The member of this newly formed consortium are primarily located in the United States, Europe, and Asia.
Members of DAA
Some of the notable firms participating in the DAA include Vertalo (a Registry and compliance solutions company), Globocap (a UK based digital platform that tokenizes illiquid assets), Liquefy (Hong Kong based end to end security issuance, distribution and trading platform), DLx (US-based law firm focusing on clients and matters involving the use of Blockchain technology and cryptocurrencies), and BetterAlternatives (A boutique alternative investment advisory firm), as well as others.
The Vision of DAA
Understanding the typical security laws across different jurisdictions and assets classes is one of the key focus area of the DAA. As many governing bodies are still working on defining laws regarding blockchain technology, groups looking to work with digitized securities are stuck waiting for the law to play catch up. DAA aims to build an open-source platform for the security token life-cycle service providers, and developing best practices for the growth of tokenized networks.
With the formation of this alliance, NEO Global Development will compile the shared learning into something the development community can digest and translate into a fully compliant security token standard. The NEP-5 standard can be applied to security tokens, however, it is fully up to the issuer to implement all the criteria that the law requires at the smart contract level. If the issuer does not have required knowledge of all the necessary regulations, it is highly likely that they will expose themselves to several legal or technical issues. The DAA hopes that by identifying the requirements, the community can come to a consensus on a new, compliant standard.
Future information and updates can be found on the NEO Medium page below: