SeriesOne, the US-based leading Blockchain based FinTech firm, has teamed up with Polymath, best known for security token protocol, to create a digital security offering ecosystem through the SeriesOne platform. This collaboration will reportedly enable token issuers to create and manage regulatory-compliant security tokens from the initial offering stage to trading on a secondary exchange.
CEO of SeriesOne, Michael Mildenberger stated that Polymath’s security token protocol, ST-20, is set to improve the process of raising capital on the platform. ST-20 protocol is a token standard, designed specifically to issue and manages security tokens, as well as represents an extension of the Ethereum (ETH) Blockchain-based ERC-20 protocol. Though, unlike ERC-20, ST-20 implants regulatory requirements into the tokens themselves, restricting trading to validated participants only.
Moreover, Polymath said that its ST-20 standard is a solution to the problem of regulatory compliance when dealing with securities since the protocol enables restrictions for policies such as Know Your Customer (KYC) and Anti-money laundering (AML). The company further added that ST-20 tokens are backward compatible with ERC-20, providing interoperability with most existing blockchain infrastructure.
The partnership between SeriesOne and Polymath came out into the view after the SeriesOne officially declared its collaboration with major South Korean crypto exchange Bithumb, in November last year, to create a digital securities exchange.