Blockchain

Polymath prepare for Polymesh security token mainnet public onboarding

Security token platform Polymath has revealed in a string of tweets that the project has finally begun preparing to onboard public users to the much-anticipated Polymesh security token creation and issuance blockchain.

It will commence as soon as key partners such as validators, KYC providers, and the Governance Council have completed onboarding.

The highly-anticipated move to open up the mainnet to the public is the fruit of years of work to build the first SEC compliant security token platform as part of a regulator first approach.

Polymesh has undertaken two testnets (Aldebaran and Alcyone), two institutional-grade audits and effectively piloted mainstream security token regulations to reach this point.

The milestone creation and issuance of security tokens on the Polymesh blockchain will be powered through a native token called POLYX (classified as a utility token), which users can access by bridging and upgrading POLY tokens – the native asset of the Polymath platform.

Polymesh is holistic in providing sophisticated securities functionality at its base layer, including identity, securities settlement engine, compliance, asset origination, corporate actions, lifecycle management, and multi-signatures.

Smart contracts will be deployable on top of the security base layer in another first.

Interestingly, Polymath have opted to adopt permissioned validators for Polymesh that are licenced to operate as regulated financial institutions – as part of a ‘proof of regulation’ mechanism designed to attract institutional adoption. Furthermore, around $150m in POLY tokens has been set aside to fuel initial adoption and uptake of the blockchain.

What are ‘security tokens’?

A security token is effectively a tokenised ownership stake of a fractionalised (or securitised) asset.

These assets can be anything from fractional ownership in a company, to fractionalised real estate, a stake in an investment fund or even a securitised classic car (exotic assets).

The benefits this affords are high liquidity and the allure of a more democratised ownership of a wider array of asset classes.