Tokeny Solutions, a blockchain platform to compliantly issue, transfer and manage security tokens, and Polygon, a platform for Ethereum scaling and infrastructure development, today announced a new collaboration, allowing asset issuers to tokenize compliant securities in a cost-effective and scalable way.
Ethereum’s smart contract deployment and transaction fees have always been difficult for financial institutions to comprehend. These fees have varied greatly over time, depending on the actions performed and the price of the cryptocurrency (ETH), an asset many institutions are unable to have on their balance sheet. With the delay of Ethereum 2, the cost has got even higher, closing the door to many projects that wanted to target a large audience of investors or those that foresaw many management transactions or transfers between token holders.
As a result of the partnership between Tokeny Solutions and Polygon, asset issuers can continue to rely on the security, resilience, and ecosystem of Ethereum, whilst reducing gas prices by over 10000 times. Gas fees become so low that they no longer handicap the adoption of security tokens.
Alongside this, transaction speeds dramatically improve to under three seconds, greatly facilitating token transfers between investors.
“Polygon’s layer-2 solution brings efficiency whereas the T-REX protocol enforces compliance for security token ownership. Now, issuers can easily migrate their operations onto Ethereum and offer a secondary market for a fraction of the cost. By reducing the fees, new segments of asset issuers are opened as it becomes more commercially viable to projects fractionalizing expensive assets, targeting retail investors, or issuing microloans, loyalty tokens, and stablecoins.”
– Luc Falempin. CEO Tokeny Solutions
Tokeny Solutions has recently released the details of the first compliant liquidity solution for security tokens in Europe, T-REX Billboard, which enables investors to participate in an active secondary market for private securities. With this announcement with Polygon, investors can now transfer with one another at a significantly reduced cost, and further, improve the liquidity of private market securities.
“Tokeny’s T-REX solution has been a game-changer for firms looking to issue security tokens. Polygon’s high performance and low-cost infrastructure will bring a new level of scalability to the existing tech stack and give issuers access to the Ethereum ecosystem at a fraction of the cost. This will allow Tokeny’s customers to offer new solutions and build projects which were previously not possible. We are excited to partner with Tokeny and contribute to their growing presence in the blockchain space.”
– Ajun Kalsy, VP Growth at Polygon