Cardano (ADA) Founder Charles Hoskinson Partners with Polymath
Hoskinson plans to build a proprietary blockchain for launching fully compliant security tokens.
The Polymath project, dedicated to building a security tokens platform, announced plans to create Polymesh - a proprietary blockchain for the issue of tokenized securities and security tokens. On the sidelines of the Consensus 2019 conference, the Polymath team announced a partnership with Charles Hoskinson, co-founder of Cardano (ADA) to create the new distributed ecosystem, reported Forbes.
Hoskinson will act as a co-architect on the Polymesh project, aiming to create a blockchain with features to match compliance requirements and safety standards for security tokens. Until now, Polymath has created the portal to create Ethereum-based security tokens, but adoption has stalled.
“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 said for Forbes.
Until recently, the Ethereum network was seen as the perfect solution for tokenization. However, transactions are irreversible on that network, and it is possible to create “unstoppable applications” without governance. Newer blockchains allow for an element of governance or centralized control, to create a valid record, but also to allow for repairing mistakes.
The Polymesh chain has the ambition to become the go-to platform 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 Hoskinson.
Security tokens are picking up slowly in the past months, as compliance and trading are more complicated. Still, security token offerings (STO) are seen as one of the promising avenues of development for digital assets.
The Cardano network is still working to add functionalities, and the ADA digital asset has drifted at relatively low prices, only recovering to about $0.07 in the recent rally. Still, the Polymath partnership may be an evolution, as Hoskinson brings in experience from both Ethereum and Cardano.
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