Introducing Multi-Party Approval for On-chain Agreements

Welcome to the November edition of the Product Newsletter, where we highlight the product team’s latest upgrades each month.

This month we are discussing the implementation of the multi-party approval feature, an enhancement of the already existing Conditional Transfer Feature.

We Upgraded The Conditional Transfer Feature

In our ongoing efforts to streamline and secure the movement of tokenized securities, we recognized a crucial need for our clients: a system that requires approvals from multiple parties before a transfer can proceed.

Our previous conditional transfer feature only allows issuers or agents to have one single-party approval. By adding the multi-party approval feature we create a flexible transfer approval process, catering to the diverse needs of our clients.

The Multi-Party Approval Transfer

Multi-party approval transfer elevates the transfer validation process by requiring multiple approvals. Issuers gain the flexibility to create custom approval workflows, tailoring the process to fit their specific transactional needs.

Additionally, as multi-party approvals are set up at the smart contract level, approvers have the freedom to choose their preferred wallet solution in order to approve or disapprove transactions, be it multisig wallets, self-hosted wallets, or hard drive wallets.

It’s designed to provide a unified, on-chain agreement signing process, which further streamlines operations, ensuring transparent and immutable recording of approvals on the blockchain. This feature aims to not only streamline the complex token transfer process but also enhance counterparty interactions in asset management.

How it Works:

1. Setting Up: Issuers, their agent, or equivalent set the rules for each multi-party approval transfer, including who needs to approve it and in any specified order.
   Types of approvers:
   1. 1. Recipient of the transfer
      2. Custodians of the seller and the buyer
      3. Any other approver the issuer or compliance agent wants to appoint
2. Initiating Transfer: When an investor requests a transfer, it’s held in a ‘pending’ state, awaiting approvals.
3. Multi-party Review: Issuers and appointed parties review and approve or disapprove the request.
4. Completion: Once all approvals are in place, the transfer is automatically executed, ensuring both security and efficiency.

Please contact us if you are interested in learning more or trying out this feature.

Thanks for reading, stay tuned for next month’s edition!