Will Polymath be the Ethereum of Securities Tokens?
Polymath is a securities token platform that opens up the blockchain to legally compliant securities with lower transaction costs. Using blockchain and smart contract technologies, Polymath’s unique Security Token Standard Protocol (ST-20) enables securities issuers to create tokens backed by traditional financial assets like private equity, stocks, commodities, VC funds, real estate, royalties, and insurance.
Polymath is the first platform to enable truly legal ICOs in the form of securities tokens
The Polymath platform is a tool that allows financial companies to create and issue their own tokenized assets.
At a high level, here are the main features of the Polymath project, as detailed in their whitepaper:
- Provides a decentralized protocol for trading security tokens.
- Enables individuals and institutions to authenticate their identity, residency,
and accreditation status to participate in a wide range of security
token offerings (STOs).
- Allows legal delegates to bid on new issuances to represent issuers on
offerings to be done in a regulatory compliant manner.
- Matches issuers with developers who can translate issuers’ Security Offering
parameters into secure code that generates ERC20 compatible tokens
Polymath is the first protocol platform that offers both KYC and legal compliance, which will be a massive value driver moving forward. Compared to Ethereum, Polymath is easier to use and also offers liquidity support, which ETH does not.
POLY Token Use Cases
Issuers: are able to post bounties in POLY tokens to encourage legal
delegates and developers to bid on providing services towards the issuance.
Developers: earn POLY for creating STO contracts. Developers are required to have these POLY fees locked up for a minimum of 3 months after a security token offering.
KYC Providers: pay a POLY fee to join the network. This fee is to identify legitimate KYC providers who can make this back in fees earned over time from investor verifications.
Investors: will be required to pay a POLY fee to KYC providers for verification.
For Legal Delegates: Legal delegates are able to earn POLY tokens by (i) proposing bids on security token issuances and (ii) being selected by the issuer to take responsibility for the issuance.
Polymath has strong advisory board with backgrounds in blockchain technologie, large corporations, and financial institutions. The CEO, Trevor Koverko, is a silicon valley entrepreneur with a strong track record of successes.
Polymath Token: The Numbers
Polymath didn’t have a public ICO, but instead had an airdrop of 250 POLY per participant to expand the userbase beyond the private investors who first funded Polymath. 1,000,000,000 POLY tokens were pre-mined, and none more will be created moving forward.
The POLY token currently trades at around $1.00 (~$240M market cap), with a circulating supply of 239,570,250 and a total supply of 1,000,000,000 POLY. As of the time of writing, POLY is ranked #86 on coinmarketcap
Polymath to the Moon
Polymath is trailblazing an exciting future for security tokenization. If Polymath can use their first-mover advantage to become the major platform for large-scale financial institutions and corporate entities to tokenize their assets, the POLY token should exponentially rise in value. There is a good chance yet for Polymath to become the Ethereum of securities tokens.
As they say, to the moon! – HODL