TokenSoft presents the new Ethereum-based security token standard


The TokenSoft design team presented a new Ethereum-based security token standard. Called ERC-1404, the new code allows issuers greater control over transactions.


TokenSoft, a blockchain venture focused on tokenising securities, announced on Wednesday that its engineers developed a new standard Ethereum token called ERC-1404. The team has published its contribution to the Ethereum Improvement Proposal repository, but the new standard has not yet been approved. According to its creators, ERC-1404 is intended for security token, tokenised and other types of tokens that fall under complex compliance rules.

Security tokens are often developed on Ethereum but have a completely different functionality as they return the real-world business as the shares of private or real estate companies.

The new standard is completely open source, which is important for maintaining a high level of security, quality, transparency and interoperability. ERC-1404 has been developed with particular attention to banking, corporate governance and securities laws.

The founder of TokenSoft, Mason Borda, commented:

"We spent the past year obtaining information from issuers, leading securities firms and major stock exchanges to better understand their compliance needs. of tokens Now we are thrilled to provide a standard that fully meets those needs and provides the tools necessary for issuers to adhere to global banking and securities laws. "

The ERC-1404 standard includes the same features and benefits associated with an ERC-20 Token, but presents some improvements that allow issuers to impose transfer restrictions based on the regulatory environment. ERC-1404 has two key functions:

So with only a few lines of code introduced in the standard, token issuers can enable smart contractual restrictions that allow them to control the movement of tokens, the number of the transferred units and the conditions of the transaction.

Lawson Baker, Head of the TokenSoft Project Zero Unit, said:

"The future of security tokens requires compliance with relevant laws, interoperability and a user experience. that works for all skill levels By supporting ERC-1404, token issuers, exchanges and portfolios can offer investors a great user experience while ensuring compliance. "

Developers have invited stakeholders to contribute to the discussions and the standard on GitHub .

ERC-1404 is not the first Ethereum-based security token standard. Last week, blockchain developer Stephane Gosselin and his team proposed one called ERC-1400.

Thursday, TokenSoft announced to have introduced support for projects on the Rope R3 platform [19659015] [ad_2]
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