Polymath, a prestigious Canadian firm, incepted in 2017, proffers an array of tools tailored for crafting security tokens (tokenized shares, bonds, and additional equity rights), all regulated under the Securities Law.
Polymath boasts two comprehensive platforms for the creation of security tokens – Polymath Capital and Token Studio. The former digitizes traditional financial instruments using cryptography, while the latter facilitates the configuration, management, and distribution of tokenized securities.
The platforms are anchored on the company's foundational technologies, including the institutional open-source blockchain Polymesh and the ERC-1400 token standard. The inception of the blockchain took place in 2021, while the token standard was ratified in 2018.
At the helm of Polymath is Vince Kadar, the CEO. Prior to this role, he was the Chief Executive at Telepin Software Systems, a fintech corporation specializing in software development for crypto wallets and payment platforms. Moreover, Vince Kadar holds the distinction of being the former technical director and founder of Airwide Solutions.
Polymath's proprietary token — POLY
POLY, the company's exclusive utility token, finds its application within the ecosystems of Polymath Capital and Token Studio. At the time of writing, its market capitalization amounts to 182.3 million dollars. There exists a circulation of 924.9 million tokens, with the maximum supply being capped at 1 billion POLY.
During the 2018 listing, a staggering 240 million tokens were distributed, and an additional 75 million tokens have been locked until January 2024.
Exploring the ERC-1400 standard
The ERC-1400 standard is a unified framework that structures the creation of security tokens. It simplifies their generation process and renders tokenized securities compatible. The ERC-1400 is based on the ST20 protocol, which enshrines the rules and guidelines for development.
Moreover, the ERC-1400 standard is a program that facilitates the regulation of security tokens, encompassing laws from diverse jurisdictions.
The primary advantages of ERC-1400 standard are:
- Enhanced transparency: This standard allows for the ability to revoke, alter, and verify the status of transactions, and even conduct an audit of a token's contract. This diminishes the risk of fraudulent activities and strengthens the defenses against regulatory oversight;
- Prior inspection: The ERC-1400 standard eliminates the necessity for technical evaluations on exchanges before a token's listing;
- Diverse asset support: Various types of assets such as stocks, bonds, private capital, real estate, art, and derivative financial tools can be tokenized;
- Improved user interface: Investors can effortlessly find the cause of a failed transaction and understand the necessary requirements without extensive searching.
Polymesh: A blockchain for security tokens
Polymesh, a tailor-made blockchain for security tokens, presents a hassle-free alternative to the typical challenges faced by this class of digital assets in traditional distributed ledgers. By embracing Polymesh, the complexities associated with transferring tokenized securities become a thing of the past, allowing for a smoother and more efficient experience.
Key features of Polymesh include:
- Confidentiality of assets and transactions;
- Built-in KYC and AML checks that verify the identity of investors;
- Blockchain governance by the company via smart contracts, preventing unforeseen forks, duplicate transactions, and other traditional blockchain flaws;
- Assured transaction execution and additional liquidity provisions;
- Programmable and automated checks through smart contracts;
- Simplified process management;
- Compliance with regulatory standards.
Within the Polymesh blockchain, resides its unique token, POLYX. It's utilized as a transaction fee, a payment for network services, and as a reward for validators. To obtain POLYX, users can utilize Polymath's specialized bridge, allowing them to exchange their POLY tokens.
