Polymath is headquartered in Toronto, Canada, and was founded in 2016. Polymath is a security token issuance platform that aims to leverage blockchain technology to introduce compliant AML/KYC open-source standards. Using smart contract audits, it assists users in navigating the complex legal processes involved in securities trading, enabling them to create and issue tokens efficiently and quickly. The platforms protocols will embed financial regulatory requirements, providing compliance assurance for token issuances, while also helping teams screen accredited investors and connect with the developer market, offering a one-stop solution for token issuance.
I. Project Applications
The standard protocol provided by Polymath can solve the problems faced by security tokens, such as lack of tradability, unregulated environments, absence of interfaces (which are costly), and the lack of an ecosystem (where assistance is hard to find). It creates a quick, convenient, and low-cost global community for security tokens. Polymath will enable virtual currencies to represent traditional financial assets like private equity, stocks, commodities, venture capital funds, and real estate.
Polymath comprises four layers: First, the protocol layer transitions from Ethereum-based smart contracts to Polymath’s blockchain. Second, the application layer enables issuers to easily create asset tokens. Third, the legal layer provides tools and services for legitimacy. Finally, there is the exchange layer for liquidity.
II. POLYX Tokens
The Polymath platform token (POLYX) serves as “fuel” for those issuing assets on the chain, covering related fees. Polymath offers a decentralized protocol for secure token trading; it allows individuals and institutions to verify their identity, residency, and accreditation to participate in Security Token Offerings (STOs); it permits legal representatives to offer new security token issuances in a regulatory-compliant manner; and it matches issuers with developers who can convert the parameters of the issuer’s security tokens into ERC20-compatible tokens.
POLY has been upgraded to POLYX at a 1:1 ratio (i.e., 1,000 POLY = 1,000 POLYX).
III. ST-20 Protocol
To ensure the compliance of all security tokens it operates, Polymath developed the ST-20 protocol. The ST-20 protocol ensures both the compliance of security token issuers and the technical security afforded by the smart contract framework it is based on. To maintain compliance, Polymath collaborates with multiple law firms, notably including a partnership with the compliance platform Vertalo.
Related Links:
https://bihu.com/article/1614858
https://polymath.network/polymesh
