Startups hoping to issue security tokens, now have one more blockchain platform to choose from a growing number of options.
This weekend, e-trading systems developer, Ed Silantyev announced the rollout of his Financial Securities Protocol (FSP) which will make it possible for the EOS blockchain to host and facilitate security token creation and transactions.
The new protocol is an industry first since it marks the first time that tokenized securities are being introduced to EOS and the developer acknowledged that a lot of work has gone into ensuring that the new addition with meet regulatory standards for the industry.
He further adds that the protocol was built on the principle of “asset self-sovereignty” while it will be backed by the Financial Securities Protocol Proposals; a different platform where developers can share ideas on how to improve the protocol.
FSP To Usher in Financial System 3.0
Ed Silantyev expressed conviction in his paper that the time has come for the rollout of the long-awaited Financial System 3.0
To this end, he wants FSP to be the “blueprint for the Financial System 3.0.” and has chosen EOS as the go-to blockchain platform because there was a lot of engagement on it during the fall of 2018.
He went further to outline five modules of the FSP:
- fsp.security — a module defining the essential functions of a financial asset created on the network.
- fsp.regulator — a module that blocks the transfer of non-compliant securities, this acting as the protocol's gatekeeper.
- fsp.exchange — the point of liquidity for projects building on the network.
- fsp.registry — a module which serves as the entry point into the network and responsible for KYC/AML checks.
- Fsp.communication — described as the “gossip module” and essential for network communications.
With 2019, generally referred to as the year of security tokens and EOS one of the most prominent blockchain networks, there is little reason not to believe that Silantyev's new protocol has some at the right time.
Now, EOS can rival other platforms by offering creation facilities to projects who want to embrace the innovative fundraising model.
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