Security token platform Polymath will build a separate blockchain for regulation-compliant tokens with an Ethereum (ETH) co-founder, the company confirmed in a blog post on May 13.
Polymath, which has already contributed to the launch of over 100 security tokens, will now work with Charles Hoskinson on a new project dubbed Polymesh.
Hoskinson, who after Ethereum became known for his subsequent cryptocurrency projects Cardano (ADA) and IOHK, will leverage his expertise to inform the development of the new platform.
The partners confirmed the plans at the ongoing Consensus 2019 conference Monday.
“There are quadrillions of dollars of financial securities, and building a blockchain to secure them is an incredibly exciting task,” Hoskinson commented in the blog post.
Polymesh will form the basis for developers to launch security tokens tailored to market needs while fully compliant with local regulatory requirements.
This, Polymath says, represents a progression from Ethereum, which serves decentralized objectives.
“Ethereum was not purpose-built with regulations or compliance in mind. It was built to enable ‘unstoppable applications,’” the blog post explains. It continues:
“By contrast, Polymesh is being built from the ground up with these considerations to become the underlying infrastructure for the world’s capital markets.”
The announcement comes two months after Polymath partnered with funding platform SeriesOne to expand the range of possibilities available to security token developers.
In April, Hoskinson himself meanwhile appeared to criticize Ethereum’s current purported stand alone development trajectory, as it continues with its Casper innovation.