Polymath Goes All-In on Security Tokens

POLY FCAS climbed 32-points in the past week since the team announced its new blockchain designed for security tokens. Price increased 30.30% in the same time period. 

About Polymath (POLY): Polymath (POLY) is creating a global blockchain platform for issuing and investing in security tokens. Currently built on top of the Ethereum blockchain, the new protocol aims to simplify the process of creating and selling security tokens by integrating the necessary legal requirements directly into their smart contracts. It also established a new token standard (ST20) and enforces compliance by whitelisting authorized investors and their Ethereum wallet addresses. 

The POLY token is used for payments on the platform, and to facilitate exchanges between issuers, investors, service providers, and developers. 

Fundamental Data: POLY’s FCAS increased 32-points (4.67%) in the past week, driven by a 67-point (13.87%) spike in User ActivityDeveloper Behavior and Market Maturity also climbed 9-points (1.05%) and 37-points (5.72%) respectively. 

Recent Events: On May 14th the team announced it was closing in on the launch of its new blockchain, Polymesh, which is designed to bring new safeguards for financial institutions working with security tokens. The new blockchain was co-designed by Cardano founder, Charles Hoskinson. Its testnet is said to go public on June 23rd. 

Analysis: While financial systems today could greatly benefit from using blockchain technology to streamline processes and reduce costs, their specific requirements around finality of transactions, user privacy and regulatory compliance have prevented mainstream adoption. 

Polymesh is bridging that gap with an impressive new protocol, known as nominated proof-of-stake (NPoS). It will address four areas of concern for financial firms dealing with blockchain securities: (1) governance, including removing the legal complexities of blockchain forks; (2) ensuring all parties have passed due-diligence checks; (3) allowing users and trading data to remain private; and (4) using automation to ensure regulatory compliance.

Perspective: By focusing only on securities and financial assets, Polymath is straying away from the current wave of general purpose blockchains that aim to cover as many use-cases as possible. That’s because financial institutions are a completely different breed of customers. They are generally risk-averse and require transparency to enforce regulations, while maintaining confidentiality for market participants and auditing. All in all, they need their own type of blockchain and Polymath is on the right track to delivering it.

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