Polymath, a leading security token issuance platform, has recently announced at Consensus 2019 that they are all set to build “Polymesh,” the world’s first security token blockchain. Adding to it, they have partnered with ‘Charles Hoskinson‘ co-founder of Ethereum and Founder of Cardano for taking on the title of Polymesh’s co-architect.
Notably, over 120 Security Tokens have been created using the Polymath Token Studio but the adoption of security tokens has been minimal. Polymath believes that this is because of compliance issues. Although, Polymath initially launched on Ethereum, the team was quite aware that a layer one blockchain would eventually be needed at a certain point.
The Need of Security Token Blockchain
Polymath states that Ethereum lacks regulations and compliance, making it better suitable for enabling “unstoppable applications”. The security token blockchain “Polymesh” will be built keeping in mind the unique needs and characteristic of security tokens that demand a specific foundation. It will bridge the gap between issuers, investors and regulators.
“All the best features of Ethereum are actually bugs for security tokens. We see a coming stampede of security tokens, but it’s more complicated then first wave of utility coins due to regulations, compliance issues, and data,” said Trevoe Koverko co-founder of Polymath”
Co-founder of Ethereum and Cardano, Charles Hoskinson stated that he is looking forward to work on Polymesh. There are quadrillions of dollars of financial securities, and to build a blockchain to secure them is going to be an incredibly exciting task
Polymesh: An Open System or Private Permissioned Network?
Polymesh isn’t an entirely open system, it’s not a private permissioned network either. It is a hybrid network in which systems are layered together. You can take multiple ledgers and put them together in a way where some of those can have closed settings, but still augment them on to an open system where transactions can occur. The sole purpose of Polymesh is to build a framework to that acts as an environment for securities, regardless of the jurisdiction that they live in.
“Polymesh is a perfect example of how we can build a system with equivalent or even better efficiencies then the western markets, while operating at a lower cost and giving regulators more control over particular assets,” said Hoskinson.
Previously in early January, Polymath joined forces with Taiwan based firm LeadBest to jointly create a token economy ecosystem in Asia.