The ICON blockchain now supports security tokens.
The ICON blockchain, designed to ensure interoperability between different chains, has announced the launch of the IRC16 standard, created specifically for the security token category.
While bitcoin, litecoin and others are intrinsically valuable payment cryptocurrencies, a security token draws its value from the valuation of the rights it represents, whether based on real or financial assets or based on revenue since they represent financing shares granted to companies or initiatives.
The new IRC16 standard aims to simplify compliance activities and the creation of the token itself. The token will be able to support the smart contracts necessary for trading and to automatically provide the information necessary to be consistent with the regulations relating to securities, which are much more stringent than those relating to security tokens and which often involve the intervention of public supervisory bodies.
The features of the security tokens supported by ICON
For this reason, the ICON IRC16 security token standard has the following features:
- Monitoring of transactions and compliance with AML and KYC regulations;
- Emergency operator control, to be used when private keys have been stolen or lost;
- Internal document management, when legal documents are required to be attached to the token representing the related rights;
- Differentiation of rights with the possibility for the issuer to issue only partially fungible tokens whose trading possibilities may be limited for certain periods of time.
The security token should also improve the liquidity of many assets by favouring their division into smaller units and thus allowing the division of important values, such as real estate.
Security tokens are becoming the promised land for blockchains, with Ethereum developing the ERC1400 standard and Neo expressing interest in the matter in order to launch STOs on its blockchain.