Polymath, Prime Trust Partner To Provide Custody For ST-20 Security Tokensbr>
Polymath is a decentralized platform that aims to make it easy to raise capital and create security tokens. The Polymath ST-20 standard embeds regulatory requirements into the tokens themselves, restricting trading to authorized participants only. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchain.
Prime Trust is a chartered, insured financial institution that provides token and fiat custody, funds processing, AML/KYC compliance, and transaction technology for the new digital economy. As a trust company, it hold cash and non-cash assets such as stocks, bonds, bitcoin and other cryptocurrencies, tokens, real estate, and private business ownership interests. The firm act as custodian and trustee for a wide variety of personal and corporate trusts, as well as a major part of the crowdfunding industry.
According to a joint statement, Prime Trust is currently capable of providing custody of Polymath coin (POLY), an ERC-20 token, and is looking to provide custody for ST-20 security tokens, which are backwards compatible with ERC-20 tokens. ST-20 tokens have built-in transfer restrictions to maintain regulatory compliance with securities laws, which is what Prime Trust is working to implement within its infrastructure.
Igor Denisov, Head of Strategy and Business Development of Polymath, said that they view digital asset custody as a major gating item for institutional investors aiming to deploy capital in digital securities.
“Prime Trust is breaking new ground as a qualified custodian for security tokens and helping to pave the way for wider adoption of security token offerings,” Denisov said.
“We are excited to see Polymath take a leadership position in developing the technology necessary to help ensure securities token offerings comply with ongoing SEC regulations, and are pleased to work with them in providing custody solutions to issuers and customers,” added Scott Purcell, Prime Trust CEO and Chief Trust Officer.