Securities token platform Polymath is scheduled to launch Oct. 1. Based on blockchain and smart contract technology, the platform automates a token sale’s legal and technical requirements while allowing digital tokens to represent shares in traditional assets like private equity, stocks, debentures, commodities, VC funds, real estate, royalties and insurance.
“Polymath is doing to securities tokens what Ethereum did for app tokens,” CEO Trevor Koverko said. “Our mission is to scale an intuitive platform that breaks down the barriers for issuers to launch new securities tokens in the same way ethereum made it easy for developers to launch new app tokens. At a fraction of the cost and time it currently takes to launch a securities token, Polymath-powered issuers will be able to launch custom tokens that can pay dividends, govern management, conduct proxy votes and collect fees – all while complying with global KYC/AML requirements via smart contract technology.”
Decentralizing securities has strong benefits, Mr. Koverko said.
“Applying decentralized properties to real world securities is well overdue. They become far more liquid, fundraising is simpler, settlement is instant, transaction fees are negligible and most importantly, every human being on the planet has access to tokens, including the unbanked.”
Polymath said the cryptocurrency market is worth $170 billion, yet only $50 million of that is security token market capitalization. The total market worth is expected to soar to $10 trillion in the next decade.
“Today, securities like equities, bonds and private equity are the foundation of our modern financial system, and they are all stampeding towards the blockchain,” Mr. Koverko said. “But rather than sprinkle a bit of blockchain technology on top of outdated infrastructure, we are building an open source, decentralized framework from the ground up that is accessible to any asset owner looking to gain exposure to the booming cryptocurrency industry.
“So far, the response from the market has been overwhelming, and it’s enabled us to stack our team with the top minds in the industry.”
Polymath plans to announce its first issuers including a Canadian VC fund, technology PE firm and a REIT in the coming weeks.