Polymath’s First Private Security Token Investment is with 7Pass Cannabis Company

Polymath Partnering with Cannabis Investment Company

Blockchain technology seems to be permeating into every industry, including cannabis. A blockchain company, Polymath, announced that it will be offering a security token partnership with 7Pass, a “hybrid investment company focused on the emerging global legal cannabis market.” “

7Pass’s official website states that the platform “provid[es] an investment vehicle spanning a spectrum of emerging investment opportunities in the cannabis sector.” This is a significant move, especially in light of the recent move to legalize recreational and medical cannabis in some states. Industry experts expect that the cannabis industry will become a hundred billion dollar or more marketplace.

The growing cannabis market has led to the establishment of cannabis-related cryptocurrencies, such as Potcoin and Budbo. While these cryptocurrencies are a good start, they have yet to make any significant impact on the industry.

This may change though, at least as cryptocurrency becomes a way for financial institutions to sidestep the need to work within. In terms of 7Pass, the platform features individuals who have a “history of success building and managing a wide array of businesses in the area of banking, financial services, marketing, and technology.”

Polymath’s announcement indicated that it intends to release a security token under a ST-20 standard, which is fully compliant with “know your customer” and “anti-money laundering requirements.” It should also be noted though that the tokens may be accessible only to accredited investors. The limited nature of the token is unsurprising. As Polymath’s CEO Trevor Koverko stated:

Polymath is proud to announce that our platform will support the first private security token in partnership with 7Pass. Polymath has always been at the forefront of the security token industry, including spearheading the ST-20 standard and now supporting the first-ever Security Token Offering (“STO”). The partnership with 7Pass on their security token is a substantial milestone for us in our journey to showcase the capabilities of our platform and its potential to improve the security efficiency, auditability, and accountability of the existing securities market.

Francisco Turner, 7Pass’s Senior Manager added:

Polymath is a clear leader in streamlining the creation of security tokens, and offers a flexible and customizable platform that makes STOs more accessible and less complex for both entrepreneurs and issuers alike. Working with them is allowing us to create our ideal security token for the global legal cannabis sector, thereby opening up a multi-billion dollar market to accredited investors and innovators across the globe.

The final question that arises is whether security tokens are actually going to be a thing. At this point, even though the investment opportunity may be limited only to accredited investors, over time, it is expected that the blockchain assets will become commonplace, so much so that they’ll become accessible to common or so-called retail investors. Once this takes place, the adoption of such an investment should increase.

As for 7Pass and Polymath, specifically, there is no information as to when they’ll release the tokens on the market. Instead, it seems that they are only in the process of launching the security token through their partnership.

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