British Standards Association Establishes Criterion for Security Token Issue
BSI (British Standards Institution), which is the standardization institution of the UK, has published the specification for security tokens, resolving potential issues related to cross-chain criterion. The published specification, referred to as PAS 19668, was sponsored by QRC, the blockchain advisory company.
The organization is led by Tokeny, the London Stock Exchange Group, BitGo, OnChain Custodian, Blockckstream, Prime Trust and several more.
In the absence of a security token criterion, data might be submitted in conflicting formats, thereby creating inefficiency in the market that would ultimately dissuade likely participants.
QRC CEO Shogo-Ishida stated:
“Issuers will trust BSI-standards technology, with greater confidence in their technology provider or token distributors, this will drive adoption of STO fundraising activity.”
PAS 19668 establishes the criteria for properties of security tokens and determines how to organize and submit data broadcast by token issues throughout a distributed ledger. It also paves way for users to scout for tokens with specific properties across various blockchains.
For illustration, a person looking at the option of buying tokens could screen security tokens on the basis of aspects, for example investor grouping necessities, as certain tokens may be offered only to bona-fide investors.
Even though there is an association of industries – the Interwork Alliance (IWA) – that studies token norms, its members are focused on the enterprise level tokenization. This includes Microsoft, Accenture and DTCC. With a Token Taxonomy Framework, the IWA studies several kinds of tokens, for instance in carbon credits. PAS 19668, on the contrary, solely applies for security tokens.
Even though PAS 19688 is a unique country focused criteria, it is aimed at serving both global security and British token issuers. The world standards organization (ISO) is working out a totally different standard that is applicable for a different domain.
CEO of Onchain Custodian Alexandre Kech stated “Standards are critical for the maturing of any new industry. PAS 19668, which already leverages the ISO 10962 Classification of Financial Instruments (CFI) standard, will be powerful when used in combination with the ISO 24165 Digital Token Identifier expected to be finalised and available for us in 2021.”
Security token solution provider Tokeny’s CEO Luc Falempin trusts that it is “essential to facilitate the interoperability of solutions and to formalize the data.”
Several kinds of organization are involved in establishing blockchain standards. This ranges from the ISO, which is a renowned standardization institute, to sector centered organizations. Of late, the World Economic Forum released a document detailing all initiatives that are currently going on across the world. The institution also underlined that certain initiatives necessitate payment and do not come under the category of open source, similar to this case.