At BlockInvest, since its inception, we have been working to combine disruptive technology with the most updated compliance guidelines. Finding the balance between technology innovations and compliance could be regarded as one of the most challenging tasks in this industry nowadays.
Blockchain was originally designed for purely digital assets, but what happens when these assets represent a real-world asset (Security token) that exists off-chain? How do Blockchain and Security Tokens work together? The point here is that security tokens are digital representations of securities on a blockchain, therefore they have regulations and are enframed into control mechanisms that must be ensured.
What BlockInvest did to ensure compliance
Even if it’s a discussed topic, at BlockInvest we believe Compliance and paperwork can be simplified through blockchain and it could bring down the costs of traditional compliance. Compliance costs reached up to 200B in 2020, more than 10% of the budget of financial institutions (Source). On the other side, Blockchain-based smart contracts can simplify and automate a lot of processes that would be otherwise expensive and time-consuming.
BlockInvest allows companies operating in these financial markets to enhance the benefits from using blockchain technology while maintaining compliance and control, ultimately gaining a competitive advantage.
As each creation of security is unique, a standard approach for all issuers can make it difficult to answer all regulatory demands.
There are places where blockchain regulations are quite advanced and allow the creation of digital assets smoothly, others where the process of regulation it’s lagging. BlockInvest ensures that the Security Token environment is compliant, then it’s up to the issuer to complete regulation steps in their own jurisdiction.
Of course, using a platform like BlockInvest that is built with a compliance Framework is helpful for those who want to fully take advantage of the technological revolution in the financial sector.
To facilitate the creation flow of security tokens, BlockInvest has implemented solutions to improve:
- KYC processes
- Whitelist management
- Token Distribution
- Cap Table management
- Corporate Actions
If you want to discover HOW, please book a Demo
The digital revolution is unstoppable and is changing every aspect of life. Thus, it is just about time before it would enter the class of securities.