Securrency has launched the Compliance Aware Token standards CAT-20 and CAT-721, to promote the adoption of security tokens.
As a result, security tokens issued under the CAT protocols are self-governing and ensure compliance throughout their life-cycle using Securrency’s regulatory technology.
The company said its patent-pending, token key-lock structure ensures that tokens may not be traded or transferred to or from a wallet that does not have the appropriate qualifications.
Tokens built with CAT-20 and CAT-721 protocols can be issued from and transferred across any distributed ledger, including Ethereum, Stellar, Ripple, GoChain, and EoS among others.
Compliance in primary offerings is achieved through features such as: Individual and entity automated Know Your Customer (KYC) and Know Your Business (KYB) across 160+ 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, and validation of an investor’s accreditation or qualification according to jurisdiction.
“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,” said Dan Doney, CEO and co-founder of Securrency. “This new protocol will enable speed, efficiency and transparency for issuers – from Wall Street to Main Street – while meeting compliance at a global scale.”
Securrency claims its proprietary multi-venue identity services and Rules Engine can ensure that compliance in both primary and secondary market activity.
The attribute-mapped wallet must fit the policy linked to the token for the CAT-20/721 token to be transferred into a wallet. The Rules Engine allows for extremely simplified mapping of relevant regulatory and transactional policies to a CAT-20/721 token by an issuer or that issuer’s advisors via a simple, user-friendly interface. In the event of changing regulations or shifting issuer requirements, the Rules Engine updates can be applied directly by issuer/counsel to automatically update the handling of tokens in circulation.
The CAT-20 and CAT-721 protocols are fully supported through Securrency’s proprietary Decentralized Investment Banking Services (DIBS), a complete suite of security token issuance and maintenance tools and services that can be easily deployed by investment banks. Securrency will also make its CAT-20 and CAT-721 protocols available to other security token issuance platforms and service providers.
Securrency recently partnered with California-based blockchain firm QuantmRE to help it build its real estate trading platform, which focuses on security tokens backed by property assets.
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