What in the World is a Security Token?

Blockchain technology is transforming the way that financial markets operate.

“Initial coin offerings” (also known as ICOs) are one of the growing business revolutions made possible by Ethereum, an open-source, public blockchain platform.

ICOs have raised an estimated total of over $4 billion USD to date. Many believe that this is just the beginning.

In ICOs, most companies sell self-described “utility tokens”, which are said to grant access to types of software. They function like a software license, and provide access to a network.

In July 2017, the Securities and Exchange Commission (SEC) released a report which concluded that certain tokens could be classified as securities and subject to regulation.

Enter “security tokens”…

Security tokens are actual financial securities, like shares or equity in traditional assets, startups, venture funds and even real estate.

Security tokens provide investors various rights and obligations in the company whose securities they are purchasing.

Many analysts predict that eventually the majority of financial products will be traded on the blockchain as security tokens.

Polymath’s security token protocol embeds regulatory requirements into the tradeable tokens themselves, which are available to verified participants only.

By powering the next generation of securities tokens, Polymath aims to be the catalyst that will create the securities token revolution.

Let the stampede begin…

P.S. Don’t miss out on POLYCON 2018 — the world’s first ever security token conference.

About Polymath

Polymath Network (Polymath) is a decentralized platform that makes it easy to create security tokens. The Polymath ST-20 standard embeds regulatory requirements into the tokens themselves, restricting trading to verified participants only. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchain.