If 2017 was the year of utility tokens, 2018 will undoubtedly be remembered for the birth of an entirely new eco-system of platforms, exchanges, and funds, all looking to capitalize on the trillion-dollar opportunity that is tokenized securities.
5 Best Security Token Issuance Platforms
Polymath is doing a good job with marketing as it seems to be creating lots of buzz around the industry. The actual code and smart contracts on github does not look to be overly complex. They have their own ST-20 token standard for it and also their native smart contracts. Plus, they have industry partnerships with the likes of tZero that will provide the much-needed liquidity for the security tokens launched on Polymath blockchain. They will need first mover advantage and network effect to maintain lead due to low technological barriers to entry.
Securitize is a blockchain platform that provides an end-to-end platform for issuers that are seeking to tokenize assets. They manage the processing of the solicited investors from login to capital received, as well as the issuance and management of the security tokens throughout the lifetime of the asset.
The platform offers brands both the flexibility and robust back-end to manage all types of potential investors in a capital raise by the token issuer. With built-in KYC/AML, accreditation and high security standards including multiple audits for both the platform and the crypto wallets, Securitize is transforming the way funds and capital for companies and assets is raised and managed.
Harbor is a blockchain platform explicitly designed to launch security tokens and help them comply with the existing regulatory framework. Their first project is the Regulated Token (“R-Token”) Standard, an open-source project that addresses the compliance problem for secondary trading. The R-Token Standard can enforce compliance across any trading platform that supports ERC-20 tokens. While centralized exchanges can enforce regulatory requirements to some degree; once a token leaves that exchange, the issuer is unable to enforce trading rules. It also helps in the transition of traditional asset classes of companies to move to blockchain and hence in their tokenization.
Swarm is a real-world asset tokenizing platform powered by blockchain. It provides SRC20 protocol, a cryptographic standard for security tokens to tokenize assets. Tokenized objects include real estates, renewables, agriculture, tech companies, crypto hedge funds, etc., that become “assets” that can be easily managed, governed and traded.
Swarm is creating a unique market infrastructure built on blockchain technology that enables investing cryptocurrency into real assets and deploying traditional capital into crypto markets in a new way. Swarm is built for: Crypto Investors who want to de-risk their portfolios, Family Offices looking for a more efficient way to invest into crypto and alternatives, and everyday retail investors searching for access to opportunities that were not accessible before.
Securrency is a blockchain-based financial technology platform that offers asset trading, payment gateways and security frameworks for enterprises. They have a simple drag & drop process for issuance of tokens with a single click. And then for distribution, you can use their RegTex engine which can conduct KYC in 160+ countries, AML on both fiat accounts and cryptocurrency wallets, and source of funds and accredited investor verification. They call themselves blockchain agnosts hence providing the users with APIs and abstraction layer called as Securrency’s flexible InfinXChange to choose a blockchain of their choice.
Best Security Token Issuance Platforms Conclusion
The listed platforms are like many other blockchain platforms that we have seen so far for launching ICOs but hose are not specifically developed or placed for issuing security tokens. As tokenization is becoming particularly popular amongst more traditional issuers and investors, allured by the benefits of blockchain technology, the future of these platforms and others in security token ecosystem like Templum, tZero and OpenFinane Network looks bright.