An email distributed this week by Tokeny CEO Luc Falempin provided some perspective as to why Tokeny opted to utilize Polygon as opposed to other blockchain options.
Tokeny is a leading European tokenization or digital security platform. The Luxembourg-based firm is building compliance technology for digital assets. As was recently reported by CI, to date, Tokeny has tokenized $28 billion in assets via their enterprise-grade tokenization solutions. Tokeny states that it is regulatory compliant in 180+ jurisdictions as it aims to provide the issuance, management and transfer of digital securities.
In 2021, Tokeny announced a partnership with Polygon – a decentralized Ethereum scaling platform. Polygon is a scaling solution that’s enabling Ethereum that is compatible with the Ethereum Virtual Machine (EVM). It is also fast, claiming some of the lowest fees in the industry.
Falempin stated in his email that since last year, Tokeny has migrated the $28 billion worth of tokenized equity and other assets from Ethereum to Polygon. He explains that Tokeny can now “get the same smart contract address on different blockchains” even if the consensus mechanism and the participants are totally different. The blockchain networks can be public or private. He noted that this is different from non-EVM blockchians like Tezos or Solana.
“Many people have asked us how to make Corda, or other private networks, interoperable with EVM blockchains such as Polygon, in order to access its active ecosystem of users. It is possible, but these systems work totally differently. Can you use a fax to send an email? Yes, but it is not done for this. An additional system or intermediary will need to be set up, and it becomes a potential point of failure, increasing risk. We saw this no later than last week with the hack of the Wormhole bridge connecting Solana and Ethereum, where $300m+ was stolen.”
Falempin said that for the moment Polygon is the best fit for tokenized securities and just last week two more tokens were migrated to the Polygon network.
For the moment, the EVM environment and especially the Polygon network is the best fit for tokenized securities. We migrated 2 more tokens last week, so the issuers and token holders are benefiting from a highly-efficient infrastructure as they bring compliance and control to the digital security ecosystem.