Security token issuance platform Polymath has reportedly formed a partnership with RegTech 100 company IdentityMind Global.
The company has also formed a collaboration with Agrello, an Estonian legal technology company offering blockchain-based smart agreement solutions. These new partnerships will streamline the security token issuance and anti-money laundering (AML) and know your customer (KYC) processes on Polymath’s platform according to various media reports.
Polymath’s will incorporate IdentityMind’s compliance, risk management, and fraud prevention solutions and Agrello’s smart agreements, digital signature and identity technologies.
Regarding Agrello’s collaboration with Polymath, Agrello CEO and co-founder Hando Rand said: “A partnership with Polymath will allow us to showcase the Agrello’s cutting-edge KYC and digital signature services in the highly regulated financial industry.”
Acting as the interface between financial securities and the blockchain, Polymath claims to simplify the complex technical and legal challenges of a successful token launch. It uses a blockchain-based system to coordinate and incentivize participants to collaborate and launch financial products on the blockchain. It creates a security token protocol which embeds regulatory requirements into the tradeable tokens themselves, which are available to verified participants according to its website.
Last month, Polymath formed a partnership with SelfKey, a self-sovereign digital identity platform. The alliance means SelfKey’s technology will be available to issuers of securities tokens, and investors, to satisfy their Know Your Customer (KYC) requirements.
CEO Trevor Koverko. “Polymath is creating the technology platform that helps to form the basis of a security token. In this new world, regulatory compliance and insight into the identity of issuers and investors is a must if sophisticated financial products are going to migrate to the blockchain. Having experienced, reputable partners like IdentityMind and Agrello by our side is critical to ensuring the long-term success of Polymath.”
IdentityMind Global, a fraud prevention & risk management platform, recently launched a new regulatory compliance solution for initial coin offerings (ICOs). Its new turnkey SaaS solution enables companies to perform required KYC and anti-money laundering (AML) checks on ICO participants.
The partnerships come at a time when national regulators have begun to take notice and issue statements mandating regulatory compliance for token sales and ICOs.
With the US Securities and Exchange Commission (SEC) yet to issue a definitive ruling on ICO tokens, there is uncertainty about which token sales are subject to securities regulations.
Last month, the US Securities and Exchange Commission (SEC) has put the brakes on an initial coin offering (ICO) that was seeking to raise up to $1bn to develop ‘the world’s first decentralized bank’.
The partnership with Polymath comes months after IdentityMind was hand-picked by a panel of industry experts for the RegTech 100, a list of companies that every financial institution should know about in 2018. The RegTech 100 is part of the Global RegTech review – an essential, in-depth analysis of the global RegTech market.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
