2018-8-30 21:40 |
Swarm Releases A New Protocol For Security Token Compliance
A blockchain company aimed at the private equity market, Swarm, has announced today the release of a new product, the Market Access Protocol (MAP), which can be used for tokenized security trading. At the moment, there are several factors that you should take into account when you want to trade your security tokens in a fully compliant way and this can help.
The protocol created by Swarm provides the user with a streamlined solution that will facilitate an efficient flow of transactions that will be fully compliant at the same time that it offers privacy for the users and regulatory compliance.
How Will Swarm’s New Protocol Work?For a transaction to be considered fully compliant, both parties need to confirm the existence of valid credentials for each participant involved in the transactions. Because of this, it is important to ensure that the token is not restricted.
According to the CEO of Swarm Fund, Philipp Pieper, there are many whitelisting solutions out there but they are highly demanding on the investors and exchanges. With a new service like MAP that has an open protocol, each participant will be able to secure a token in a very easy way and will still keep their privacy and integration intact. He believed that the product can be a new catalyst for investing.
Swarm’s MAP will have a graph of protected data that you can use it anytime and anywhere and the requirements for compliance will be there. The MAP graph will show if a wallet has been validated, if Know Your Customer and Anti-Money Laundering laws have been followed, geographically-based rules and if the investor is accredited or not. However, it does not hold identifiable information about the wallet of the users.
MAP is a compliance ledger and open data oracle and you can use third party wallets and blockchains to incorporate it, so you will not need any middlemen at all besides Swarm itself.
It is expected that the MAP will enable the industry to actually innovate in the area and create a new standard, but it is hard to actually be sure if that will happen or not.
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