Alphaseed’s ultimate goal is to determine how a Security Token standard should be best structured and operated to support both existing and new financial asset classes.
Originally, each Security Token created was supported by a new, unique smart contract on the Ethereum blockchain. But a lack of consistency in how these smart contracts were engineered increased friction with process stakeholders such as custodians and exchanges, who would need to complete both business and technical due diligence on assets. Challenges like this increased operational requirements when issuing, trading, or managing Security Tokens, risking the market relevance for a whole new class of assets. Like the adoption of many other new technologies, the path to Security Token viability is paved by a requirement for standardization. For Security Tokens to reach their full potential, issuers, investors, KYC/AML providers, wallets, exchanges, regulators, and developers need to be working within an agreed-upon framework to better guide the industry.
In essence, the Alphaseed standard programmably enforces regulation for Security Tokens by applying jurisdictional laws from across the globe. It can even apply off-chain data to transactions to include necessary real-world input and authorization. With these elements engineered into your Security Token smart contract, issuers experience:
The ability to reverse, force, and check the status of transfers makes the tokenization journey totally transparent.
Standardization ensures that stakeholders, such as exchanges and custodians, no longer have the onus to complete technical due diligence prior to onboarding the asset.
Support for a broad range of current and new financial assets such as publicly traded equity and bonds, real estate, or artwork.
Investors can easily understand why trades fail and what may be needed to remain compliant.
Alphaseed’s technology used market research as a foundation to build blockchain specifically for security tokens.Alphaseed’s Tokens therefore go a long way towards making
Ethereum established one foundational layer for security tokens—smart contracts—making tokens programmable and automated. But there are more foundational layers required to ensure regulatory compliance and institutional confidence, better enabling security token creation, issuance, management, and liquidity.
A focus on the privacy of assets, trades and positions.
Built-in blockchain control that maintains asset functioning, avoiding duplication. Of forks.
Programmable and automated checks via smart contracts.
Intertwined cross-border regulations ensure proper trade execution and provide further liquidity.
A KYC/AML permissioned blockchain that verifies the true identity of participants.
A tool for driving human behavior using Incentives within a blockchain ecosystem.
An investment contract that represents legal ownership of a physical or digital asset that has been verified on the blockchain.
The token's value doesn't necessarily have a direct connection to the company's value and success.
The token represents true ownership of the company and Is directly related to the growth of the company.
Many scammers found this opportunity to raise money and exit without building the product they promised to develop.
Companies that release security tokens must go through significantly regulatory hurdles. This naturally reduces the potential for scams.
There are still significant difficulties for creating true regulations for ICO's.
The company and the Investors must meet the strict conditions of the SEC (The Howey Test).
An investment contract that represents legal ownership of a physical or digital asset that has been verified on the blockchain.
The token represents true ownership of the company and Is directly related to the growth of the company.
Companies that release security tokens must go through significantly regulatory hurdles. This naturally reduces the potential for scams.
The company and the Investors must meet the strict conditions of the SEC (The Howey Test).
A tool for driving human behavior using Incentives within a blockchain ecosystem.
The token's value doesn't necessarily have a direct connection to the company's value and success.
Many scammers found this opportunity to raise money and exit without building the product they promised to develop
There are still significant difficulties for creating true regulations for ICO's.