Securities token platform Polymath announced on Tuesday it has formed a partnership with SEC qualified custodian Prime Trust to provide solutions for security tokens utilizing the ST-20 standard. The partnership with Prime Trust comes just days after Polymath announced its collaboration with V Stock Transfer, a stock transfer and registrar firm, that will enable Polymath to integrate with the V Stock platform thus facilitating transfer and registration of security tokens.
According to the duo, Prime Trust is currently capable of providing custody of POLY, an ERC-20 token, and is looking to provide custody for ST-20 Security Tokens, which are backwards compatible with ERC-20 tokens. ST-20 tokens have they have built-in transfer restrictions to maintain regulatory compliance with securities laws, which means ST-20 and ERC-20 tokens have slightly different technological requirements, which is what Prime Trust is working to implement within its infrastructure.
Speaking about the partnership, Igor Denisov, Head of Strategy and Business Development at Polymath, stated Prime Trust is “breaking new ground” as a qualified security tokens custodian and is helping to pave the way for wider adoption of token offers. Scott Purcell, Prime Trust CEO and Chief Trust Officer went on to add:
“We are excited to see Polymath take a leadership position in developing the technology necessary to help ensure securities token offerings comply with ongoing SEC regulations, and are pleased to work with them in providing custody solutions to issuers and customers.”
As previously reported, Polymath’s platform currently provides issuers of financial securities with introductions to advisory firms, legal teams, KYC providers, and transfer agents. Polymath’s ST-20 standard now embeds regulatory requirements into the tokens themselves, restricting trading to verified participants only.