In today’s financial markets, security tokens are becoming a game-changing force. Not only can they unlock trillions of dollars in asset value and investment opportunities, they can also create new paths for liquidity through programmable automation. However, while the Ethereum blockchain has emerged as a good starting point for security tokens, it still lacks the basic elements required by issuers and investors, as well as the specifications required by institutions and regulators.
Demand for security tokens
Based on our research and experience, institutions need a blockchain built from the ground up to meet the specific requirements of securities regulation. That’s why PalyMath launched PalyMesh, an enterprise-grade blockchain designed specifically for security tokens. PalyMesh’s fundamental design focuses on four key regulatory elements and is designed to meet the needs of regulators and institutions while unlocking the true potential of security tokens.
Confidentiality: Protects the privacy of information and ownership while providing mechanisms for accurate reporting and auditing. This is critical to building investor trust, as data security and privacy are increasingly valued in the current financial environment.
Authentication
Ensure that no person or entity can create, acquire or sell security tokens without verification. Securities regulatory requirements require issuers to know the identity of investors in certain circumstances and to continuously monitor their suitability throughout the investment process. Additionally, all validators must be known, regulated entities.
Governance Structure: Provide an operational and governance structure that ensures the management of PalyMesh allows for the curation of content and protects assets from content forks during network upgrades. This includes providing an established method for processing and initiating proposals, ensuring transparency and sustainability of the system.
Compliance
Provide financial primitives and smart extensions to manage security tokens across multiple jurisdictions and enforce appropriate rules to create, issue and trade security tokens while managing the necessary complex restrictions and allocations. Such compliance is critical for institutional investors as they need to ensure the legality and safety of their investments.
POLYX: PalyMesh's native token: PalyMesh will use the Nominated Proof-of-Stake (NPoS) consensus mechanism and be equipped with the finality device GRANDPA, all of which will be supported by POLYX, PalyMesh's native utility token. Through PalyMesh, validators will stake POLYX in the network and run authorized nodes, while nominators will stake POLYX to the validators. Both will receive rewards or penalties based on the blocks they add to the chain and how well they fulfill their roles.
All POLY tokens currently existing on Ethereum can be upgraded to POLYX at a 1:1 ratio. This design not only improves the liquidity of the tokens, but also provides holders with greater flexibility.
in conclusion
The launch of PalyMesh marks the closing of the gap between security token technology and the needs of issuers, investors, institutions and regulators. This innovation will not only reshape the future of financial security, but also bring new opportunities to the development of global capital markets. As financial technology continues to advance, the value and influence of POLYX tokens will become increasingly prominent, becoming an important part of the future financial ecosystem.
In this ever-changing financial environment, embracing new technologies is an inevitable choice for every investor and institution. The emergence of POLYX tokens undoubtedly paints a blueprint for a safer and more efficient financial future for us.