Tokenization is the process of converting real-world assets into digital tokens on a blockchain. These tokens represent ownership or stakes in the underlying asset. Polymath’s platform makes tokenization easy by providing a suite of tools that manage the legal, financial, and technical aspects of issuing digital securities.
Security tokens are digital representations of traditional securities (like debt, equity, or real estate) on a blockchain. Just like their traditional counterparts, they are subject to regulatory oversight and must adhere to strict compliance standards.
By leveraging blockchain technology, security tokens streamline traditionally cumbersome, manual processes, offering increased efficiency, transparency, and automation. They provide a reliable, tamper-proof source of truth that all parties can depend on.
As of 2025, the security token market continues to grow rapidly, with projections suggesting it could surpass $2 trillion globally in the coming years. Industry experts, including Deloitte, predict that security tokens will become integral to the future of finance, reshaping how assets are traded and managed across the globe.
There are two ways that security tokens can be created. The first is through asset tokenization, which is when a traditional financial asset that exists off-chain is represented on-chain, making it a ‘tokenized security’. An example of this would be tokenizing an existing share certificate. The second is through asset origination, which is when a financial asset is defined and exists only on the blockchain. These assets are often described as ‘natively digital securities’.
The traditional securities lifecycle is very inefficient, which limits scale, cuts into profit, and constrains product offerings for banks, broker-dealers, asset managers, issuers and investors alike.
Digitizing securities on the blockchain can bring benefits including:
Polymath is a blockchain-based platform that helps businesses tokenize real-world assets, offering solutions for securities token offerings (STOs). Our goal is to simplify the creation, issuance, and management of digital securities, enabling businesses to raise capital efficiently and securely while complying with global regulations.
Polymath is committed to ensuring that tokenized securities meet regulatory requirements across different jurisdictions. Our platform includes features that support KYC/AML (Know Your Customer/Anti-Money Laundering) checks, investor accreditation, and other legal frameworks necessary for compliance. We also provide legal templates to help issuers draft legally compliant documents.
Polymath’s solutions are designed for a wide range of users, including issuers, investors, legal firms, fund managers, venture capitalists, and financial advisors. Whether you are looking to raise capital, create new investment opportunities, or manage digital securities, Polymath has tools that can help.
The Polymath Capital Platform is an all-in-one solution for managing the lifecycle of tokenized securities. It includes tools for creating, issuing, and managing tokens representing real-world assets, enabling businesses to access a global pool of investors while ensuring compliance with regulatory standards. For more information visit our Polymath Capital Platform page.
Polymath Token Studio is a user-friendly platform that simplifies the creation and management of security tokens. It provides powerful tools for issuers to design, launch, and maintain digital securities while ensuring full regulatory compliance.
Key features:
For more information, visit our Token Studio page.
Node as a Service is a feature that allows businesses to host their own blockchain node on the Polymath network without the need for technical infrastructure or maintenance. It ensures high uptime, reliability, and scalability, enabling your tokenized securities to operate smoothly in a decentralized environment.
Yes! Polymath’s platform is built with integration in mind. We offer APIs and other tools that allow seamless integration with existing financial, legal, and business systems. Whether you need to integrate with an existing investment platform or manage tokenized assets through an enterprise solution, we’ve got you covered.
Polymesh is a purpose-built blockchain designed specifically for the tokenization of financial assets. It was created to provide a secure, scalable, and compliant platform for digital securities. Polymesh is designed to meet the legal and regulatory requirements that traditional securities markets demand, making it the ideal blockchain for issuing and managing tokenized assets.
Unlike Ethereum, which is a general-purpose blockchain, Polymesh is built specifically for the tokenization of regulated assets. Polymesh integrates features like on-chain identity verification, regulatory compliance, and governance mechanisms tailored to the needs of the financial industry. This makes Polymesh the ideal blockchain for digital securities, providing the necessary infrastructure to meet legal and regulatory standards.
Polymesh offers several key features, including:
The Polymesh token (POLY) is the native utility token of the Polymesh blockchain. It is used for transaction fees, governance, and staking within the Polymesh network. POLY enables the decentralized operation of the platform, ensuring its security and sustainability.
ERC-1400 is a blockchain standard specifically designed for the issuance and management of security tokens. It combines the flexibility of token standards like ERC-20 with the specific needs of the financial industry, ensuring that tokenized securities are compliant with regulations and can be traded within the constraints of securities laws. The standard provides a framework for managing security tokens in a way that supports regulatory requirements such as KYC/AML, investor accreditation, and transfer restrictions.
While ERC-20 is a general-purpose token standard, ERC-1400 is specifically designed for security tokens. It combines the basic functionality of ERC-20 tokens (transfer, balance, etc.) with additional features tailored to the regulatory requirements of securities markets. ERC-1400 includes compliance checks, such as KYC/AML, investor accreditation, and transfer restrictions, which are not included in the ERC-20 standard. These features make ERC-1400 suitable for the regulated world of digital securities.
ERC-1400 bridges blockchain and traditional finance, making tokenized securities compliant with industry regulations. It ensures:
Yes, ERC-1400’s flexibility and regulatory compliance features make it suitable for tokenized securities that may be traded across borders. By implementing transfer restrictions and investor accreditation requirements tailored to each jurisdiction, ERC-1400 can help issuers manage cross-border compliance, ensuring that tokenized securities are only available to authorized participants in specific regions.
The ST-20 standard is a set of guidelines for the tokenization of securities on the Polymath network. It ensures that tokenized assets are fully compliant with securities laws and regulations. This standard provides a common framework for issuing, managing, and transferring digital securities while adhering to legal and regulatory requirements.
The ST-20 standard is crucial because it provides a secure and compliant framework for issuing tokenized securities. By following the ST-20 standard, issuers can ensure that their tokenized assets are legally recognized as securities, enabling them to raise capital from a wider pool of institutional and accredited investors while meeting regulatory requirements.
The ST-20 standard includes features such as investor accreditation, KYC/AML compliance, and customizable restrictions on the transferability of tokens. These features help ensure that tokenized securities comply with relevant regulations in different jurisdictions, offering both issuers and investors peace of mind regarding legal matters.
The ST-20 standard is specifically designed for the tokenization of securities, making it different from other standards like ERC-20 or ERC-721, which are not focused on regulatory compliance. The ST-20 standard integrates legal, financial, and technical components to ensure that tokenized securities are in line with global securities laws, while other standards may not provide such regulatory support.
