Blockchain startup Blockstream unveils security token platform

Blockchain startup Blockstream has announced a new platform that will allow businesses to issue their own tokens on the Liquid Network.

In October 2018, Blockstream officially launched the Liquid Network – a bitcoin sidechain facilitating faster bitcoin transactions between businesses and individuals, while enabling extended functionality. The inter-exchange settlement network connects cryptocurrency exchanges, market makers, brokers, and financial institutions around the world.

At Consensus 2019, the company has unveiled Liquid Securities platform – the first offering launched on the Liquid Network.

The platform’s simple web interface makes it easy to issue, manage, and monitor the usage of security tokens. On the other hand, rules for token ownership, such as regional restrictions and investor accreditation, are established through a web interface and companion API. The rules are then enforced by a combination of multisignature smart contracts and a server-based Liquid Authorizer.

This means that token rules are not required to be written at the smart contract level and can be easily adjusted via the Liquid Securities control panel, allowing issuers to adapt to the rapidly evolving regulations.

“Businesses around the world are racing to take advantage of the tokenization of securities,” said Samson Mow, CSO of Blockstream.

“Unfortunately, blockchain platforms like Ethereum are failing them due to issues with scaling, privacy, and reliability. Liquid was built to address these issues. Now, with the launch of Liquid Securities, businesses can quickly issue Liquid-based security tokens with the click of a button, and establish sophisticated rulesets to conform with their regulatory requirements with no engineering experience required.”

Initial launch partners for the platform include BnkToTheFuture, TokenSoft, Zenus Bank, Atomic Capital, and Pixelmatic.