March 7, 2019 – Canada / Barbados / Gibraltar
Digital Asset Management Limited (“DAM”) have formed part of an international consortium developing best practices in STOs (Security Token Offerings) in collaboration with Polymath, KABN and Gibraltar international law firm, Hassans, among its founding members.
At present, the security token ecosystem may be considered to be at an early yet mile stone stage as the first cohort of international STOs are launching. Among the various regulatory considerations, there are also key standards and best practices to develop to ensure that STOs are able to run from public (or private) launch to completion, particularly in an international context. As the digital asset industry develops, so are efforts to create what are known as digital securities or financial instruments.
Kevin North, CEO of Polymath, a global leader in software solutions that enable assets to be digitised, distributed, fractionally owned, and ultimately liquidated, commented “the intention of this partnership is to create a best practice model for customers who need help with the full lifecycle of an STO. In this model, the issuer would work with an integrated network of providers who are committed to ensuring that offerings are compliant with securities laws, rules, and regulations across multiple jurisdictions and trading platforms, increasing the value proposition by reducing the distance and friction between investors and issuers.”
KABN, will be the first organisation to launch its digital securities offering using this process. “Working with Polymath, KABN supports the compliance requirements for digital securities with its Always On solution providing a faster, better and more economical solution for issuers and investors to validate and verify identity, KYC (know your client) and AML (anti-money laundering), and manage liquidity programs,” said Ben Kessler, CEO of KABN
Sam Buxton, CEO of DAM, a licensed custodian and broker dealer firm in digital assets commented “the announcement of this consortium outlines the amount of enquiries and the development of relationships with key entities in the fast developing and growing opportunity of digital securities and financial assets that we are receiving. We are looking forward to servicing this industry and developing a best practice model with other members in STOs and digital financial assets on distributed ledgers.“