Templum Security Token Offering Platform Set To Launch Own Private Blockchain Via Symbiont

Templum Security Token Platform Set To Launch Own Private Blockchain

Templum Inc, a firm focused on becoming the leading platform for tokenized asset offerings (TAO) and their secondary trading, has engaged Symbiont, a blockchain technology firm creating smart contracts powered solutions for institutions, to create a private distributed ledger technology (DLT) and smart contracts system for conducting security token offerings (STOS), according to reports on February 25, 2019.

Templum Moving From Public To A Private Blockchain Network

Per sources close to the matter, Templum has joined forces with Symbiont blockchain project, in a bid to allow the latter to develop a private blockchain network for it.

Specifically, Templum will use private blockchain to help clients to facilitate security token offerings (STOs).

This way, Templum will help its customers to overcome the scalability and speed challenges that comes with public blockchains such as the Ethereum.

A Commendable Paradigm Shift

According to the Templum team, clients were previously given the opportunity to choose their preferred blockchain protocol on which their assets will be tokenized, but this often posed a lot of issues for both Templum and its clients.

Commenting on the matter, CEO of Templum, Christopher Pallotta reiterated that while most clients chose to create ERC-20 tokens that would be powered by the Ethereum smart contracts blockchain, the network’s scaling challenges, as witnessed during the CryptoKitties launch, makes it unsuitable for STOs.

“A public blockchain network such as Ethereum may slow down drastically or even stop working completely when faced with heavy traffic like a ten million dollar transaction,” declared Vincent Molinari, co-founder of Templum.

Pallotta also noted that regulatory compliance is also very complex on public blockchains since it is almost impossible to who your counterparties are, coupled with the fact that it is still unclear whether miners on the Ethereum network will be mandated by the regulators to register as broker-dealers.

Against that Backdrop, Pollotta reportedly said that a private blockchain is an excellent platform for conducting STOs, as it gives the issuers complete control over the entire process.

“For securities issuance, we firmly believe you need a private, controlled blockchain because you need control of the full lifecycle,” Pallotta said.

As reported by Bitcoin Exchange Guide in August 2018, Templum Markets successfully tokenized the shares of the St. Regis Aspen Resort via Securitize’s private DS protocol and offered it to investors as Aspen coins.

Why Symbiont?

Explaining why it chose Symbiont to develop its private blockchain, Pallotta revealed that the former’s ties with highly reputed financial institutions like Citigroup and Nasdaq made it quite an appealing choice.

Also commenting on the matter, Ben Spiegelman, strategy leader at Symbiont said that the vast success witnessed by initial coin offerings during the crypto bull run of 2017 shows that:

“Investors want greater access to firms. Project organizers want a larger pool of investors. They want more streamlined fundraisers and enhanced liquidity – all the things that were sort of promised with ICOs.”


Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide