With increasing regulatory scrutiny, cryptocurrency exchanges are preparing for the proliferation of security tokens, and fintech startup Securrency is ahead of the curve in issuing them. John Hensel, COO and co-founder, shared his perspective on the shifting cryptocurrency landscape and the company’s progress.
Founded in 2015, Securrency is a fintech company that combines legal financial services with distributed ledger technology (DLT). Operating in countries worldwide, Securrency provides security token issuance solutions for advanced distribution control, platform compatibility and liquidy.
In an interview with CryptoSlate, John Hensel, the company’s COO and co-founder, uncovered the unique features that make Securrency an industry leader in security token issuance.
Given the early stages of cryptocurrency regulation, most security token issuers are not focused on maintaining regulatory compliance for security tokens transferred across borders or into foreign markets.
Securrency seeks to resolve these issues with distribution control through its patented tokenized issuance software.
“It’s called the compliance-aware token. We used proprietary techniques to map attributes of investors to their wallets and map the attributes of issuance to the token. This process allows the token to self-govern so it can only be traded or transferred to another wallet that has the proper credentials. Having this mechanism actually also lets all market participants who have the proper credentials to act as liquidity providers.”
Amid increasingly stringent regulation, the ability to track and adapt security tokens will become imperative to remain compliant with authorities. Securrency has further developed methods of updating security token properties in real-time to adapt to changing regulations in over 160 countries.
When asked if it’s difficult to adapt to a changing regulatory environment, Hensel replied:
“It isn’t. When we issue a token, we use a tool called ‘the rules engine,’ which is a very capable, convenient tool for mapping code into a token. We actually have the ability to modify and update the token’s code while the token is in circulation. We can amend the token almost real-time to comply with new regulations.”
The Securrency platform is also ledger-agnostic, meaning that its tokenized issuance services are compatible with several DLT protocols.
“Our tools are able to layer over the top of these other ledgers, which allows us to issue tokens on a ledger that is desired by the issuer. But if for some reason, a ledger is affected–some kind of degraded performance–and it’s necessary to re-issue the tokens, we can rollback the ledger and re-issue the tokens on another ledger with virtually no impact on the token.”
As an advanced security token issuance provider, Securrency aims to create automated versatility for security tokens in all aspects of issuance and trading.
“The ability to pivot very efficiently and very securely to an environment where the value is protected is essential. By using an approach that Securrency has adopted, you’re able to get much more liquidity on a global scale.”
The Securrency platform enables issuers to define terms of the deal, set distribution rules and tokenize securities in a streamlined workflow. In addition, Securrency has a patent-pending RegTex engine that “can conduct KYC in 160-plus countries, AML on both fiat accounts and cryptocurrency wallets” and verify accredited investor identities.
With patented features unique to the firm, Securrency is poised to become an industry leader in security token issuance and regulatory compliance.
For more information on Securrency, you can visit their website here.
Cover Photo by zhang kaiyv on Unsplash
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