Polymath, a security token platform, has joined forces with Loopring, testing whether peer-to-peer trading of security tokens can be compliant on a DEX protocol, CoinDesk reports. According to Polymath, the trials have been a success. All unauthorized trades failed.
For the sake of the trials, ST-20 security token standard was used. It provides transfer restrictions and requires meeting certain criteria to become a holder as KYC/AML verifications are needed for security token trades.
“What we are showcasing here is that decentralized exchanges and security token issuers have the ability to maintain compliance through the standardized protocols that Polymath and others have built,” said Graeme Moore, Polymath’s VP.