Polymath is a platform that facilitates the creation, issuance, and management of security tokens on the blockchain, addressing regulatory and operational challenges related to identity, compliance, confidentiality, and governance. It has developed Polymesh, a blockchain specifically designed for regulated assets, offering a tailored infrastructure for modern capital markets. Trevor Koverko is one of the co-founders of Polymath. ^[1]

Overview

Polymath provides a platform for creating, issuing, and managing security tokens, utilizing the ERC-1400 standard on Ethereum. With over 200 tokens deployed, the platform addresses capital market challenges related to identity, compliance, confidentiality, and governance through its Polymesh blockchain. Polymesh is specifically designed for security tokens, aiming to facilitate institutional adoption by offering tailored solutions for issuers, investors, institutions, and regulators. The platform combines advanced functionality with user-friendly tools to improve capital markets and manage digital securities. ^[1][2]

Technology

Polymesh

Polymesh is a blockchain designed specifically for security tokens, with governance, identity, compliance, and confidentiality as its foundational pillars. These elements were chosen to address the challenges institutions and regulators face in adopting security tokens. Polymath uses Polymesh to meet the critical needs of issuers, investors, institutions, and regulators, facilitating complex operations like settlement. The specialized design of Polymesh aligns with modern capital market requirements, offering advantages over general-purpose blockchains. Additionally, Polymath provides user-friendly tools on Polymesh to make its functionality accessible to non-technical users. ^[3][4]

ERC-1400

ERC-1400 is designed to unify security token standards by integrating new and existing protocols. It extends the ST-20 framework to cover core compliance, document handling, notifications, security token controls, permissions, delegation, forced transfers, and partial fungibility, enhancing investors' ownership rights transparency. It enforces global regulations by integrating jurisdictional laws and off-chain data into transactions. Key features include enhanced transparency through token status tracking, reduced need for stakeholders to do technical due diligence, support for a broad range of financial assets, and an improved user experience. Developed by the Security Token Roundtable with contributions from industry experts, ERC-1400 aims to provide a comprehensive framework for security tokens. ^[5][6]

Security Tokens

Security tokens are blockchain-based digital representations of traditional securities like debt, equity, or real estate, and they must adhere to regulatory compliance standards. They automate many manual processes, creating a reliable source of truth for all parties involved. Using security tokens reduces costs by eliminating intermediaries, and processes like fundraising, trading, settlement times, and dividend issuance become more efficient. Security tokens also allow for 24/7 market access, increase liquidity by tokenizing traditionally illiquid assets, and offer hyper-fractional ownership, making assets more accessible to a global investor pool. They allow investors to diversify their portfolios and maintain a transparent digital record of ownership and transactions, enhancing protection and reducing misconduct risk. Automated compliance and payments are also key benefits, with regulations and payments like dividends being customizable and enforced within each token's configuration. ^[7]

Capital Platform

The Polymath Capital Platform is designed to digitize real-world assets as security tokens using smart contracts. It supports various stages of capital raising, including token issuance, strategy setup, investor attraction, and portfolio management. The platform is built on Polymesh, a blockchain for regulated assets, and caters to asset owners, advisory teams, and investors. It offers tools for creating and managing token offers, cap tables, and corporate governance while integrating with KYC/AML services and ensuring regulatory compliance. Users can tailor the platform to their needs for a comprehensive solution from fundraising to investor management. ^[8]

Token Studio

Polymath’s Token Studio allows issuers to reserve, configure, and manage their security token using Polymath’s POLY utility token. The studio is available on the Ethereum and Polymesh blockchains. ^[9]

POLY

Polymath (POLY) is a cryptocurrency that facilitates the creation, issuance, and management of security tokens on the blockchain. POLY is the utility token for the Polymath Token Studio on Ethereum, enabling issuers to create and manage security tokens. It addresses challenges in public infrastructure related to identity, compliance, confidentiality, governance, and settlement. It has a total supply of 1B tokens. ^[2]

Partnerships

REtokens

In September 2023, Polymath partnered with REtokens, a real estate tokenization company, to change real estate investment strategies using Polymath’s platform to streamline tokenization, navigate regulations, and make real estate investment more accessible and secure. ^[10]

Fair Square Lab

On March 28th, 2023, Fair Square Lab (FSL) and Polymath Research Inc. signed an exclusive Memorandum of Understanding (MoU) to enhance FSL's blockchain technology by integrating security tokens. Fair Square Lab (FSL) is a blockchain technology firm that developed technologies and solutions for accessing security token assets on the blockchain, including issuance and distribution. ^[11]

MetaFinance

In June 2022, Polymath announced the acquisition of MetaFinance, a capital raising and investor management platform. This technology provided an integrated solution for the private market ecosystem to collaboratively issue, manage, and distribute securities, making investment in tokenized securities more accessible and inclusive for all types of investors. ^[12]

GATENet

On September 9th, 2021, GATENet, a GSX Group initiative with a vision to build on-chain financial market, settlement, and registry solutions, became the newest node operator on the Incentivized Testnet (ITN) for the Polymesh blockchain. Engineered by Polymath, Polymesh was designed as the first blockchain specifically for capital markets. The blockchain depended on verified entities like GATENet to run nodes and maintain the chain's security. ^[13]