" class="no-js "lang="en-US"> Securrency’s New Patent for Ground-breaking Compliance Aware Token Framework a Critical Step in Evolution to Global, Liquid, Digital Assets Marketplace - Fintech Finance
Thursday, December 01, 2022

Securrency’s New Patent for Ground-breaking Compliance Aware Token Framework a Critical Step in Evolution to Global, Liquid, Digital Assets Marketplace

Securrency, a leading developer of institutional grade, blockchain-based financial and regulatory technology, today announced that it has received a United States patent for its Compliance Aware Token® Framework (CATF). This framework is a critical  step in Securrency’s four-phase vision that includes:

• Tokenizing financial assets at scale

• Interconnecting global marketplaces on universal transaction and compliance rails

• Accelerating decentralized finance by combining powerful smart contracts with automated  business logic

• Enabling a global, liquid digital assets marketplace available to all

In landmark pilot projects with global regulatory agencies and in commercial deployments with world-class  financial institutions, Securrency has demonstrated how CATF can solve some of the most pressing  issues for digital assets by allowing issuers, their agents, and intermediaries to:

  • Easily build rule sets into a token for: identity authentication and authorization, securities  regulations, and transaction and liquidity requirements
  • Automate multi-jurisdictional compliance and risk-management functions, such as preventing  fraud, enforcing holding periods, and applying trading volume and collateralization rules
  • Repeat and reuse rule sets to streamline compliant digital asset creation and issuance
  • Audit rule sets to facilitate reporting on tokenized securities offerings
  • Empower authorized individuals or entities to freeze or claw-back tokens from a user wallet in, for  example, a tax, bankruptcy, or criminal proceeding

Dan Doney, CEO of Securrency, said: “A massive wave of regulated asset tokenization is fast  approaching. Basic tokenization without sophisticated, automated compliance isn’t going to cut it when it  comes to equities, public funds, fixed income products, and fiat currencies. Financial service providers will  need to implement tokenization solutions that encompass identity, security, risk, transaction, and liquidity  rules to succeed in a digital assets market that is expected to reach over $16 trillion by 2030. This  requires new ways to scale compliance, and our patented Compliance Aware Token Framework will be  the foundation for achieving this critical industry milestone.”

Jonathan Steinberg, CEO, WisdomTree, said: “We expect all financial assets to eventually move onto  blockchain infrastructure. As first-movers, WisdomTree and Securrency are focused on leading the way  with a sophisticated, compliance-centered approach to blockchain-enabled financial products and  services as we create the digital marketplaces of the future.”

Nadine Chakar, EVP, State Street said: “Compliance is fundamental to the evolution of digital assets as  it will expand global access to capital and investments, help with institutional adoption, and allow for

appropriate regulations. As an early investor in Securrency, we saw the potential of the company’s  compliance technology as a key element in State Street’s digital asset strategy.”

Securrency’s Compliance Aware Token® Framework simplifies critical functions like custody, transfer  agency, and regulatory compliance and is enabled by four key components of Securrency’s Capital  Markets Platform:

  • Identity Services support fast on-boarding and authenticate investors based on flexible third party credentialing systems such as Anti-Money Laundering (AML), Know-Your-Customer (KYC),  and Know-Your- Business (KYB), using an open identity-proofing approach
  • Attestation Registry provides real-time, risk-based authorization for market participants to  engage in transactions for which they are properly credentialed based on factors such as their location and regulatory requirements
  • Policy Rules Engine provides real-time representation of cross jurisdictional, asset-specific, and  dynamically configurable policies through an intuitive, user-friendly interface so compliance can  be embedded in every transaction through smart contracts
  • Compliance Oracle enables tokens to reference encoded rules and regulations, ensuring that a  tokenized or digital asset may only be transacted in accordance with specified policies

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