This decade, particularly in the last two years, has seen an unprecedented surge in the digital currency field. People from all walks of life and for all kinds of reasons are investing in it. It is not surprising that in this nascent phase there are significant challenges. One of these is an easy way to contain these tokens.
Today, the most viable way is to keep them in your wallet (offline or otherwise). This added to the drama of the associated risks like hacking and theft. Then there are the big legal problems concerning the conservation of cryptocurrencies. To counter this, Prime Trust, on Tuesday 25 September, began offering all the tokens compatible with ERC20.
What is the Prime Trust?
A blockchain-based fiduciary company, Prime Trust, is an American company that seeks to provide the same revolutionary stability that Paypal has made to the banking sector in general. To be the custodian of multiple security tokens, Prime Trust will have to solve a major challenge at the sector level, rationalizing the nuances and the peculiarities of many ERC20 tokens.
In an official statement, Prime Trust's CEO and Chief Trust Officer, Scott Purcell, expressed the joy of being able to offer it. He continued to describe this development as an engineering breakthrough. It is worth noting that Prime Trust is the first financial institution to hold the ERC20, BTC and ETH protocol tokens.
How does it work
ER20 is the backbone protocol for most security tokens developed on the Etherum blockchain. Investors could negotiate with each other but needed to find out how to safeguard their tokens and make sure they were in line with the rules of the US Securities and Exchange Commission (SEC).
Now, for cryptocurrency entities, whether they are trades or investors, Prime Trust has offered them the opportunity to meet SEC requirements and has also provided a safe place for cold storage.
What made this possible
Prime Trust has used the human resources of those directly involved in the development of the ERC20 standard. They also held conferences to convince participants to agree on a framework for this revolutionary idea. The idea is to interconnect via API and exploit the different business models. This greatly simplifies participation tokens.
With this giant step in the evolution of the digital currency, investors can hold their tokens in the custody of the company with greater security and ease. The company itself is focusing on tokens issued as ICO of ERC20 (Initial Coin Offering) and STO (Security Tokens Offering). This move sees Prime Trust going beyond its basic Ethereum (ETH) and Bitcoin (BTC) offer for encryption and custody services.