Welcome to this month’s edition of Tokeny Insights. It has been an incredibly busy month for us and I thought it would be useful to shed some further light on our announcements.
One of the missing ingredients to the security token ecosystem circulates around creating and managing identities. For financial instruments to be compliantly issued using a blockchain infrastructure, companies are obligated to identify their stakeholders and ensure the relevant rules and regulations are applied. investorID, an open system that acts as an aggregator of identity proofs such as KYC & AML, plugs this gap and allows issuers to act in full confidence their securities are being accessed and traded compliantly. On the buy side, investors need an application where they can easily create, control and update their on-chain identity. investorID enables users to create their re-usable identity to repeatedly access and trade compliant digital assets. Last month, we were very proud when Pierre Gramegna, Luxembourg Finance Minister, was the first to create his blockchain identity using the service.
Compliance will always be a hot topic. Due to the infancy (or perhaps we’re approaching adolescence now?) of our industry, there are still concerns from issuers surrounding the application of compliance. Our partnership with DLA Piper, a global law firm with lawyers located in more than 40 countries, allows us to lean on a legal firm that has an abundance of experience when it comes to applying global securities regulations. Through this partnership, we are offering a best of both worlds initiative, one that guarantees compliance and allows issuers to reap the benefits that come from working with blockchain.
For this market to grow, it’s imperative that the secondary market establishes itself and brings volume to the trading of security tokens. We help exchanges apply compliance and provide the transferability needed for issuers to obtain liquidity for their investors. This why we are actively partnering with liquidity providers, such as Archax. Expect more to come in this field.
If you have any thoughts or questions then let us know. As always, below is a curated summary of key updates across the industry over the past month.