Securrency has developed two Compliance Aware Token (CAT) protocols which can be issued from and transferred across any distributed ledger. The tokens feature self-governance to ensure life-cycle compliance, and a number of features which contribute to both global regulatory compliance and a level of liquidity which has yet to be seen.
The world of security tokens is advancing at an incredible pace. Securrency’s CAT protocols have just brought this world to the next level.
The Benefits of Multi-Ledger Security Token Protocols
Securrency claims that their new protocols— the CAT-20 and CAT-721 tokens— are compatible with any distributed ledger. This includes Ethereum, Stellar, Ripple, GoChain, EoS, and many others.
CEO and Co-Founder of Securrency, Dan Doney, captured the benefits of the new token protocols through the following:
“We developed the CAT-20 and CAT-721 standards because security tokens should be truly liquid – they should not be limited to one ledger and they should be easy to trade, transfer and regulate. This new protocol will enable speed, efficiency and transparency for issuers – from Wall Street to Main Street – while meeting compliance at a global scale.”
Yet it’s not merely added liquidity and mulit-ledger technology that Securrency is concerned with. For the sake of compliant primary offerings, their new token standards offer the following features:
- Individual and entity automated Know Your Customer (KYC) and Know Your Business (KYB) across 160+ jurisdictions, with non-documentary verification available in 37 jurisdictions
- Transaction checks through a Know Your Wallet (KYW) service that automatically proofs and scores digital wallets and associated cryptocurrency
- Automated source of funds (SoF) verification services through an easy-to-manage administration service
- Validation of an investor’s accreditation or qualification according to jurisdiction
How the CAT-20 and CAT-721 Tokens Achieve such Groundbreaking Technology
Securrency is no stranger to Fintech. Established in 2015, they’ve developed their own proprietary multi-venue identity services and ‘Rules Engine’ to ensure compliance throughout secondary market trading. The major benefit here allows for the seamless on-chain and off-chain movement of tokens.
Throughout primary and secondary market trading, the new CAT protocols entail an attribute-mapped wallet (i.e. the ‘key’) which has to comply with the policy linked to the token (i.e. the ‘lock’) in order for a transfer to be successful.
The Rules Engine provides the capacity for simplified mapping of regulatory policies. Whenever regulations or issuer requirements change, this engine can also implement such changes, and update all tokens in circulation.
Both the CAT-20 and CAT-721 protocols are supported by Securrency’s Decentralized Investment Banking Services (DIBS), which encompass a suite of security token issuance and maintenance tools. They’re also making both security token protocols available to various security token issuance platforms, in an effort to promote the global adoption of tokenized securities.
The implications of Securrency’s new multi-ledger technology on the future of security tokens was discussed by Chief Operating Officer John Hensel.
“Security tokens represent a pathway to the successful development of highly-liquid blockchain-enabled capital markets. However, there have been major challenges that stand in the way of mass adoption, including ‘walled garden’ approaches and complicated technical deployment. We believe that the global interoperability of the CAT-20 and CAT-721 protocols, as well as Securrency’s simple and convenient token issuance and maintenance tools, will establish a common standard that can be used by all issuance platforms to support the growth of the security token economy.”
Will multi-ledger technology become a benchmark of success in the future of security tokens? If so, will the CAT-20 and CAT-721 protocols cement Securrency’s position as a security token frontrunner? We’d love to hear what you think in the comments below.
Image courtesy of Securrency.