Polymath is a security token platform that employs the ST-20 token standard to assure compliance with government rules when creating digital assets. Polymath is a platform similar to Ethereum, except rather than offering utility tokens like an ICO platform, it gives equity in a firm - a model with a well-established regulatory framework. Polymath concentrates on KYC, AML, and other legalities to guarantee that securities regulations are followed.
The project's ultimate purpose is to create an environment and protocol where verified investors may buy and trade tokenized securities that are equal to other forms of investments such as stocks, equity, and venture capital financing.
Trevor Koverko and Chris Housser, two Canadians, are the creators of Polymath. Koverko has previously worked at a number of finance firms before making the switch to cryptocurrencies in 2015. Housser worked as an associate in financial and employment law for four years in Toronto.
· July 2017 - The founders form Polymath Inc. in Barbados.
· January 2018 - ICO raises $59 million
· August 2018 - Polymath's main net goes operational with its first five security token offers.
· November 2018 - Polymath launches a fiat-pegged offering. There is now a US dollar quotation available for security tokens.
When designing the network, the Polymath developers focused on a number of issues. For one, the platform supports resolving the limitations of the ERC-20 token standard. ERC-20 tokens are the best option for cryptocurrencies and utility tokens. However, they lack the regulatory criteria required to perform security token transactions. These issues are resolved by Polymath with the implementation of the ERC1400 standard. Notably, Polymath managed and encouraged the adoption of this standard. This new token standard incorporates regulatory compliance into its basic protocols. Polymath combines this token standard with a modular strategy that allows users to create personalized services in order to satisfy local regulatory needs. These specifications can be unique to the management of securities.
· Smart contracts: Investors seeking to purchase stock escrow their funds. Both the issuer and the investor must satisfy all conditions before the tokens and funds under the autofill contract are delivered.
· Identification: Before investing in STOs, investors must confirm their identification and place of residence. Additionally, they must meet the requirements for accredited investors.
· Lockup Period: According to American law, securities must be kept locked up for a period of time before being distributed to participants. This prevents investors from dumping equities on the open market right away, which would lower the price. Polymath performs the same tests on its own network. Accredited investors must wait 90 days to acquire their token, while regular investors must wait a full year.
The use cases of Polymath tokens are:
· Polymath allows users to build, issue, and manage their own security tokens.
· POLY tokens are used to pay access fees to a suite of smart contracts for creating, issuing, and managing tokens.
· Polymath offers a variety of advantages that make it an excellent choice for people looking for security token protocols.
· Investors can also utilize POLY to pay for KYC/AML verifications.
DATE | NEWS/EVENTS | IMPACT |
07/05/2022 | TerraUSD and LUNA both collapsed, and as a result, a number of crypto platforms folded in the aftermath | -48% Decrease |
30/09/2021 | Rari, Telos, and Polymath surge as Bitcoin's price reaches $44,000 | +73% Increase |
12/05/2019 | Cardano's founder collaborates with Polymath to create a securities blockchain | +24% Increase |
12/02/2018 | Polymath Partners with IdentityMind to provide KYC and AML services | +90% Increase |
In Polymath's ideal world, all securities are transformed into programmable tokens. As a result, companies of all sizes now have access to capital. Investors can also avoid fraud by having access to clear information. The Polymath team found inefficiencies in today's securities. The platform could provide a better option.
According to the whitepaper, "the global securities market is made up of three basic instrument types: equities, debt, and derivatives." In 2016, the total notional values of these three markets were $67 trillion, $99 trillion, and $1.2 quadrillion, respectively.
It will be fascinating to see what share of the market Polymath can grab in the next few years.
Polymath