Polymath and Prime Trust Announce Partnership to Provide Custody for ST-20 Security Tokens

Polymath, the blockchain industry’s first securities token platform, and Prime Trust, an SEC qualified custodian, have announced a partnership that will see Polymath and Prime Trust working together to develop custody solutions for security tokens utilizing the ST-20 standard.

Polymath Network (Polymath) is a decentralized platform that makes it easy to create security tokens. The Polymath ST-20 standard embeds regulatory requirements into the tokens themselves, restricting trading to verified participants only. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchain.

Prime Trust is a chartered, insured financial institution that as a “Qualified Custodian” provides token and fiat custody, funds processing, AML/KYC compliance, and transaction technology for the new digital economy. They are 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. A unique feature of ST-20 tokens is that they have built-in transfer restrictions to maintain regulatory compliance with securities laws. This means that ST-20 and ERC-20 tokens have slightly different technological requirements, which is what Prime Trust is working to implement within their own infrastructure.

“We view digital asset custody as a major gating item for institutional investors aiming to deploy capital in digital securities. Prime Trust is breaking new ground as a qualified custodian for security tokens and helping to pave the way for wider adoption of security token offerings,” said Igor Denisov, Head of Strategy and Business Development, Polymath.

“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,” said Scott Purcell, Prime Trust CEO and Chief Trust Officer.

The Polymath platform now provides issuers of financial securities with warm introductions to high quality advisory firms, legal teams, transfer agents, KYC providers, and custody providers.