A blockchain venture focused on securities tokenization, TokenSoft has developed a new Ethereum based token standard ERC-1404. Finally, the new standard is waiting for approval after the team submitted its new development to the Ethereum Improvement Proposal repository.
The new standard developed by TokenSoft is fully open source which adds to its security, transparency and quality. ERC-1404 is developed for security tokens, tokenized securities and any other token falling under complex compliance rules. The new standard will mainly focus on industries like banking, securities laws and corporate governance.
The ERC – 1404 standard reportedly includes all the features and benefits of ERC-20. In addition, it also includes some improvements for imposing transfer restrictions based on regulatory context. Token issuers can enable smart contract restrictions which allows them to control the movement of tokens and the transaction condition.
Mason Borda, Tokensoft founder said:
“We’ve spent the past year gaining insight from issuers. Also the top securities law firms and major exchanges to better understand their token compliance needs,” said Mason Borda, founder of TokenSoft. “Now, we’re excited to deliver a standard that comprehensively addresses those needs. It will provide the tools necessary for issuers to adhere to global banking and securities laws.”
Hence, the new standard is developed to push the industry forward towards global adoption. Anyone who wants to launch a compliant token can use the standard.
Lawson Baker, TokenSoft’s Project Zero-unit head said:
“The future of security tokens requires compliance with relevant laws, interoperability, and a user experience that works for all skill levels. By supporting ERC-1404, token issuers, exchanges and wallets can deliver a great user experience to investors while ensuring compliance.”
GitHub Submission of ERC-1404
Also, the developers of TokenSoft have invited the interested parties to contribute to the platform and engage in discussions on GitHub. Check the GitHub submission of ERC-1404 here. TokenSoft has also announced that it now supports projects on R3’s Corda platform.