Polymath, the leading security token platform, has announced today at Consensus 2019 that they will build “Polymesh,” the world’s first security token blockchain. Charles Hoskinson, co-founder of Ethereum and Founder of Cardano, will collaborate with Polymath, taking on the title of Polymesh’s co-architect.
Until now, Polymath has built its technology solution for security tokens on Ethereum. While there have been over 120 Security Tokens created using the Polymath Token Studio, adoption of security tokens has been minimal. Polymath believes this is due to compliance issues.
“Polymesh is a new security token layer one blockchain. It is purpose built, since security tokens have unique needs and characteristic that demand a specific foundation. Ultimately, we want to marry issuers, investors and regulators together, which is what the layer one architecture is designed to do,” Trevor Koverko, co-founder of Polymath told me.
According to Polymath, Ethereum lacks regulations and compliance, making it better suited to enable “unstoppable applications”. By contrast, Polymesh is being built from the ground up, taking in mind certain considerations to ensure that it will eventually become the underlying infrastructure for the world’s capital markets.
“After co-founding Ethereum and Cardano, two of the most widely used blockchains in the world, I am looking forward to working on Polymesh. There are quadrillions of dollars of financial securities, and building a blockchain to secure them is an incredibly exciting task,” said Charles Hoskinson, co-founder of Ethereum and founder of IOHK and Cardano.
Moreover, according to Hoskinson, it’s important to differentiate the construction of a security token from the ecosystem that it resides in.All kinds of data are associated with a security that you wouldn’t want associated with a cryptocurrency. It’s not a good idea for security tokens to live in a completely open system...