Yes, you heard it right. The Swiss security token firm (BlockState) has made up its mind. As of now, some ERC 20 Tokens from the Ethereum public blockchain platform will be shifted to the private distributed ledger technology platform called- Corda. This will happen with the help of R3 Technology. It is creating a network for the Swiss Digital Exchange (SDX.) SDX is the world’s thirteenth largest Stock exchange.
The head of digital assets at R3s- David Nicol said-
BlockState has seen that exchanges and market infrastructure providers are building new digital infrastructure on Corda, so they are jumping in. […] The way they are doing that is with SDX, by issuing tokens that were on Ethereum onto Corda.
This plan will be executed within this year’s time. These tokens will be sealed in a smart contract on the Ethereum. And the other ones will perform on the private distributed ledger technology platform- Corda. This will open great possibilities for those who issue the security tokens.
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On the other hand, the CEO of BlockState- Paul Claudius said-
A retail investor probably wouldn’t go through a financial institution connected to a regulated secondary market if he is also able to just hold an ERC-20 token in custody. So I think this is bringing together these two investor ecosystems.
The future plans of SIX, as stated, as stated at the beginning of this year, are to get new digital assets listed, and to tokenize financial tools. The prime focus is on areas such as fine art, real estate.
The crypto world has been like a new kid on the block. But the way it is maturing and gaining popularity is astonishing in many respects. The fact that the public blockchain and private blockchain are joining hands is a great sign of growth. There was a time R3 and Ethereum were poles apart in the history of crypto evolution. But today they are participating in the same project. The difference was in the perspective of both the companies. Ethereum saw imbibing newcomers as important, whereas R3’s Corda was more inclined towards traditional institutions such as banks and other regulated figures. Another reason behind the contrasting approach was the use of public blockchain and private blockchain. Both found the other to be unfit.
This coming along of Ethereum and R3’s Corda will result in the Security Token Offering (STO) of BlockState to enjoy the combined force of the two platforms, and thus be the first STO of this kind. Looking at the coming time, BlockState plans to tokenize sustainable energy assets, real estate, fine art, etc. Beyond this, the next issuance which the platform is planning is from Streetlife, which is a company that deals with “urban music and lifestyle.”
Moreover, the tokens that will be issued on R3’s Corda will also be registered as securities in Switzerland. This will make it suitable for platforms like banks, investors, private businesses. The regulations should help develop the trust factor and thus a greater adoption of the digital token. On this, Nicol thinks that registering the tokens is a good way to go about securities. It gives the user the power to directly deal with the blockchain for regulation purposes. In today’s time, as per Nicol, the capacity to execute is highly regarded, and by providing that to the user, BlockState is going to meet a great success.
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As per the CEO of BlockState, the Swiss regulations are “agnostic” to the blockchain technology. He thinks that in order to issue the uncertified shares, there is no requirement for an international “paper-based ledger which is dematerialized by a central securities depository.” Now when there is no necessity of this kind, then the maintaining of the shareholder register also becomes less important. He said it could be done either on a “piece of paper or on a DLT.”
