On June 7, 2018, Polymath Network announced a partnership with Pegasus FinTech, a blockchain accelerator. The partnership will see Pegasus use Polymath’s smart contracts feature to create and handle regulation-compliant security tokens. Pegasus in turn will offer comprehensive guidance to clients who launch tokens on the network.
Pegasus is an accelerator that encourages innovative financial solutions by supporting regulation-compliant public ICOs. Headed by CEO Diana Adachi, the team is composed of legal, financial, and marketing experts that work with fledgling projects of potential to help them make quick headway in the cryptocurrency market.
To that end, Pegasus will advise 2 security tokens that are preparing to launch on the Polymath Network: Real Fan Token and Block Development Capital. What little we know of these tokens is described below.
Real Fan Token
Real Fan Token is a product of Fan Blocks, an e-commerce subscription portal marketed towards die-hard sports fans. The portal itself offers monthly offers, events, and products for its subscribers. It is this business model that RFT wants to tokenize.
The Real Fan Token will allow holders to receive exclusive, personalized merchandise and access to live events. As a security, the Real Fan Token will also provide holders a share of the profits generated from subscription boxes.
Block Development Capital
Block Development Capital, located in Greater Toronto, is a mortgage provider that concentrates on underserved markets, paying particular attention to residential and commercial property. The token the company plans to launch will be backed by assets, and is claimed to provide yield, maturity bonuses and redemption features to its holders.
David Lucatch, executive chair of Pegasus, admires Polymath’s intent to comply with regulations, saying:
Polymath has developed the ST-20 security token protocol and its platform to enable companies to — guided by the right advisory and legal counsel — easily issue compliant digital securities on the blockchain.
He also states:
Real Fan Token and Block Development Capital are perfect examples of those companies and tokens that are engaging in the compliant environment to meet the jurisdictional requirements for security offerings.
Polymath Network touts itself as the “future of securities,” ardently sticking by its belief that cryptocurrencies will be aided by following the law and registering as jurisdictional requirements demand. The decentralized platform makes it easy for entities to raise capital and launch tokenized versions of their assets.
Polymath COO Chris Housser is excited that the securities-focused network is gaining traction:
Pegasus is set to be one of the first firms to advise on security token offerings using Polymath’s ST-20 security token standard. We are proud of what our teams have accomplished together as we continue to expand the Polymath ecosystem and put user and client success first.
The long-term vision of the company is to tokenize all security assets, including commodities, real estate, and venture capital. The idea is to bring the innate benefits of smart contracts to traditional financial assets.
Tokenized Financial Assets are Growing in Popularity
As it becomes increasingly apparent that blockchain can bring immeasurable benefit to financial players, a greater number of entities have begun mulling over how they can incorporate it into their business model. Recently, Digix, in partnership with Request Network, marked a first by launching a tokenized form of gold that could serve as form of payment, backed by the London Bullion Market Association.
Tokenized real estate is expected to be another major industry disruptor, allowing token holders to hold ownership of portions of a real estate property.
It is such innovative services that platforms like Polymath Network hopes to nurture. Much talk is underway concerning the significance of institutional investors and enterprise-level players, and the hope that they will spur the market on to its next bull run. With the market currently in a deep bear run, investors will be hoping for that sooner rather than later.