The new platform, dubbed Polymesh, will be developed particularly for firms that like to make security tokens that are regulation-compliant, according to Polymath co-founder Trevor Koverko. A purpose-built blockchain, in theory, will assist in increasing adoption of security tokens by streamlining the process for businesses seeking to introduce tokenized assets.
According to a press release, ethereum and cardano co-founder Hoskinson will be a “co-architect” in Polymesh.
Security token platform Polymesh has already supported the introduction of 120 different security tokens, the release stated. Still, their adoption is still considered low compared to the rest of the crypto ecosystem.
The company argues that one reason behind this is compliance with regulations. It underscored that the security tokens of Polymath were built on ethereum, the world’s second-biggest cryptocurrency by market capitalization.
Developers working on Polymesh will take into consideration what capital markets particularly need when establishing the network.
Hoskinson said in a statement that he was “looking forward to working on Polymesh.”
“There are quadrillions of dollars of financial securities, and building a blockchain to secure them is an incredibly exciting task,” he added.
Koverko said that Polymath was eager to work with Hoskinson “on the world’s first purpose-built blockchain for security tokens.” He added that the previous experience of Hoskinson with both ethereum and cardano would be helpful in creating this new network.