Polymath is a blockchain-based platform designed to simplify the process of issuing and managing security tokens. Security tokens represent traditional assets, such as real estate, equity, or commodities, in the form of digital tokens on a blockchain, with the aim to make these assets more accessible, liquid, and easier to trade.
Here are some key aspects of Polymath:
1. Security Tokens
Polymath allows businesses and organizations to create and issue security tokens, which are digital assets that represent ownership in traditional investments like stocks, bonds, and real estate. These tokens are subject to regulatory compliance, making them legal and tradable within established frameworks.
2. Security Token Standards (ERC-1400)
Polymath introduced the ERC-1400 token standard, which ensures that security tokens comply with security regulations and offer features that enable issuers and investors to maintain compliance. It aims to offer privacy, transparency, and regulatory adherence for tokenized securities.
3. Polymath’s Core Features:
- Polymath Studio: A user-friendly interface that helps issuers launch security tokens without requiring deep technical expertise.
- STO (Security Token Offering): A mechanism where companies can raise capital by issuing security tokens instead of traditional equities or bonds.
- Compliance and KYC/AML Integration: Polymath integrates Know Your Customer (KYC) and Anti-Money Laundering (AML) processes to ensure compliance with securities laws.
- Token Customization: Allows businesses to customize their tokens to meet specific regulatory requirements.
4. Blockchain Infrastructure
Polymath is built on the Ethereum blockchain, though it also enables integration with other blockchains. By leveraging Ethereum’s smart contracts, Polymath offers a secure, decentralized infrastructure for issuing security tokens.
5. Polymath’s Token (POLY)
POLY is the native utility token of the Polymath ecosystem. It is used for various purposes within the platform, including governance, transaction fees, and paying for services such as legal and compliance tools.
6. Tokenization Process
- Step 1: Businesses begin by creating a tokenized version of their asset, specifying the desired legal and regulatory requirements.
- Step 2: Polymath assists in structuring and ensuring the asset complies with local laws through its compliance tools.
- Step 3: Once the token is created, it can be issued via a Security Token Offering (STO) to raise capital.
- Step 4: Investors can buy and sell these tokens through regulated exchanges, and the tokens can be traded on platforms that support security tokens.
7. Ecosystem and Partnerships
Polymath has formed partnerships with various legal, financial, and blockchain entities to support the development of security token offerings and make them viable for global markets.
Polymath’s goal is to drive the adoption of blockchain technology in the traditional finance sector, focusing on regulated and compliant digital securities. Its efforts contribute to the broader movement of tokenizing real-world assets to make them more accessible and tradeable on blockchain networks.
