Making Blockchain Work for Capital Markets

This guide explains how Polymesh—an institutional-grade permissioned blockchain built specifically for regulated assets— aligns the functioning of the blockchain with the requirements of modern capital markets.

Making Blockchain Work for Capital Markets

Learn how a purpose-built blockchain enables asset tokenization by addressing the issues with Ethereum

Stringent identity requirements

Securities issuance and transfer require a known identity, but most chains are built for pseudonymity. Polymesh uses a customer due diligence process to ensure all actors on the chain are verified and transactions are authored by permissioned entities.

On-chain compliance

Solutions built on top of general purpose blockchains struggle with processing the complex logic needed to comply with regulations. Polymesh builds compliance into the chain, enabling faster processing and lower protocol fees that can scale as demand and complexity of regulation grows.

Confidential positions and trades

Most market participants need their position and trades to remain confidential, but anyone can see holdings on general purpose blockchains. Polymesh has engineered a secure asset management protocol that enables confidential asset issuance and transfers.

Industry-led governance

Contentious forks in the chain present significant legal and tax challenges for tokens backed by real assets. Polymesh uses an industry-led governance model to prevent hard forks and guide the evolution of the chain.

Simplified transfers and deterministic finality

Ethereum's probabilistic finality prevents the blockchain from serving as a golden record for asset ownership. By creating assets at the protocol layer, Polymesh is able to provide a simplified approach to transfers that supports deterministic finality.

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Learn how a purpose-built blockchain enables asset tokenization by addressing the issues with general-purpose blockchains like Ethereum.

financial post

“Polymesh streamlines antiquated processes and opens the door to new financial instruments by solving challenges with the public infrastructure through five key design principles built into the base layer of the chain, rather than as external add-ons.”