Polymath and Prime Trust Team Up to Provide Custody for ST-20 Security Tokens

Polymath, which provides a decentralized protocol and platform for security tokens, is entering the competitive crypto custody enterprise through a partnership with SEC-regulated custodian Prime Trust.

According to a joint statement, the Nevada trust company will provide custody for Polymath coin (POLY), and is looking to offer the service for some ST20 security tokens issued on the Ethereum blockchain beneath the ERC-20 standard.

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Prime Trust is already famous at the blockchain space thanks to its back-office solutions. The company began in July its bitcoin storage service, and then added support for Ethereum and ERC-20 tokens.

In simple terms, a custodian is a financial institution that holds assets, in both electronic and physical forms, on behalf of its clients to ensure that they are kept safe and secure. In the blockchain space, a custodian service does the same thing but exclusively for crypto assets such as digital currencies and tokens.

Prime Trust, however, is not the only company providing infrastructure and operational cryptocurrency custodianship for the wider investment management industry. Leading cryptocurrency exchange Coinbase, Japanese financial holdings company Nomura and most recently SIX Group, the owner of SIX Swiss Exchange (SIX), have recently launched dedicated offerings of cryptocurrency custodianship to institutional investors.

Polymath has its own rules that require investors to verify their status as accredited investors before taking part in a security token offering. Earlier this year, the startup partnered up with Identity Mind for KYC (know-your-customer) and AML (anti-money laundering). Polymath also functions as a network where investors can post their ideas for new security tokens, and development teams can bid to win the contract to build them.

Commenting on the news, Igor Denisov, Head of Strategy and Business Development at Polymath, said: “We view digital asset custody as a major gating item for institutional investors aiming to deploy capital in digital securities. Prime Trust is breaking new ground as a qualified custodian for security tokens and helping to pave the way for wider adoption of security token offerings.”

“We are excited to see Polymath take a leadership position in developing the technology necessary to help ensure securities token offerings comply with ongoing SEC regulations, and are pleased to work with them in providing custody solutions to issuers and customers,” added Scott Purcell, Prime Trust CEO and Chief Trust Officer.