Polymath and Prime Trust Partner For POLY Coin and ST-20 Security Tokens Custody
Polymath, a company that provides a decentralized protocol and platform for security tokens, has signed a partnership with the SEC-regulated custodian Prime Trust. In this way, the startup enters the crypto custody market.
In a joint statement, the trust company from Nevada will be providing custody services for the Polymath coin (POLY). Moreover, it will try to offer the service for some ST-20 security tokens that have been issued on the Ethereum blockchain.
In the past, Prime Trust was offering back-office solutions. In July, it decided to start with its bitcoin storage service, and added support for Ethereum and ERC-20 tokens.
Custodians are very important for the market. They hold the assets (both digital and physical), on behalf of its clients. In this way, they can assure them that their funds are completely safe and secure.
At the moment, there are several companies beside Prime Trust that are offering infrastructure and crypto custodianship for the management industry. For example, the famous cryptocurrency exchange Coinbase, the Japanese company Nomura, and SIX Group, launched cryptocurrency custodianship for institutional investors.
Indeed, wealthy investors in the market are requiring for better infrastructure in order to place their funds in the space.
Polymath has very strict rules for investors that want to take part in a security token offering. Indeed, they have to verify that they are accredited investors before trying to invest in these offerings.
Igor Denisov, Head of Strategy and Business Development at Polymath, commented on the matter:
“We view digital asset custody as a major gating item for institutional investors aiming to deploy capital in digital securities. Prime Trust is breaking new ground as a qualified custodian for security tokens and helping to pave the way for wider adoption of security token offerings.”
Scott Purcell, Prime Trust CEO and Chief Trust Officer, has also given his comments about Polymath saying that his company is very excited about the step that Polymath is taking. In this way, it will be possible to comply with current SEC regulations and provide custody solutions to both customers and issuers.