Swarm, a blockchain for private equity, today announced the release of its Market Access Protocol (MAP) for tokenized security trading. Currently, there are several qualifications that must align for security tokens to be traded compliantly.
The protocol provides a streamlined solution that facilitates the efficient flow of compliant transactions while offering both privacy protection for participants and regulatory compliance.
For a transaction to be rendered fully compliant at the point of execution, parties must confirm the existence of valid credentials for each participant, and also ensure adherence to token requirements and restrictions.
[perfectpullquote align=”full” bordertop=”false” cite=”Philipp Pieper, CEO of Swarm Fund” link=”” color=”” class=”” size=””]”Existing whitelisting solutions are highly demanding on investors and infeasible for qualification providers and exchanges to adopt. With MAP we are releasing an open protocol that enables participants in the security token market to interact based on essential privacy, incentives, and integration efficiencies. MAP will be a catalyst for the next wave of growth in crypto investing.”[/perfectpullquote]
Swarm’s MAP contains a graph of protected data that can instantly surface whether or not a particular wallet is compliant with the requirements for any security token transfer.
The MAP graph shows whether a wallet has been validated against a set of qualifications (including KYC/AML, accredited investor, and geographically-based rules), which Qualification Providers provided that validation, what the associated costs are, and whether the validated data is congruent to the rules for the security token subject to each transaction. MAP does not contain personally identifiable information connected to each wallet.
MAP will enable the entire industry to build and innovate in respective areas of expertise while connecting in a standardized way. This framework empowers the entire security token market, including centralized and decentralized exchange models, to grow faster.
As a compliance ledger and open-data oracle, third-party wallets and blockchains can incorporate MAP into their compliance structures. The open and decentralized protocol enables all of the above without reliance on any middleman – including Swarm itself.