Securitize Launches DS Security Token Liquidity Protocol
As governmental interest in regulation of cryptocurrencies offered in ICOs continues to climb, the need for a platform to automatically regulate the lifecycle of securities tokens for compliance has never been higher. Thousands of startup companies on the blockchain have expressed interest in following regulatory protocols, some even becoming interested in the concept of issuing their tokens under the direct name of security tokens, taking on all of the regulatory requirements that come with such a title.
But the regulatory powers of the United States have been very clear on their stance on the ever-changing nature of cryptocurrencies. The director of the U.S. Commodity Futures Trading Commission has outlined his belief that currencies shift during their lifecycle, transitioning at times from a commodity to a security, and even back again.
Because of this unique regulatory situation, it is evident that the sale of cryptocurrencies is no easy task. Compliance with regulations for securities alone is no easy undertaking, and requires significant work. But when a security is a commodity at certain times and can be a security at others, the compliance burdens are higher than ever for hopeful startups looking to make their money on an Initial Coin Offering.
The proliferation of security tokens on the already-oversaturated market of Initial Coin Offerings means that companies are increasingly enamored with the prospect of a comprehensive platform to ensure constant compliance throughout the lifecycle of the coin.
Securitize, a compliance and lifecycle management platform, has recently announced their intention to roll-out an entirely new service called the DS Protocol, which is poised to add a variety of new services to stakeholders and coin-offering companies alike.
Introducing DS (Digital Securities) protocol: Securitize’s Digital Ownership Architecture for complete lifecycle management of security tokens https://t.co/Mtms4uIjd4
— Carlos Domingo (@carlosdomingo) June 5, 2018
Securitize And Compliance
Securitize has long been a capable platform for both the issuing and the management of security tokens throughout their lifecycles. Their application integrates a variety of solutions in order to ensure that tokens provided by their clients are compliant in regards to ownership and trades.
The company has garnered a respectable reputation among some companies, their notable customers including some major exchanges.
DS Protocol Features
Perhaps the most interesting aspect of the new protocol is its ability to integrate third-party applications running on the Ethereum blockchain. This will enable companies to build their own clients to enhance user-interface, and could open the door to third-party developers being incentivized to create new and exciting developments within the growing sector.
Additionally, the protocol will integrate several new capabilities for stakeholders. The first among these is a trust service, which would enable clients to authorize other applications or exchanges to use existing issuance protocols.
A registry service will make registration information available throughout the lifecycle of the coin, regardless of the stage of interaction.
Compliance service is still the hallmark of the Securitize providing, offering security coin providers continuing compliance with rules and regulations throughout the lifecycle of the coin.
Finally, a communications service is essential to the user-interface aspect of the technology. Communication service provides token holders and investors with the relevant information regarding the development of the token.