Ontology Network Announces Their Own Token Standard, OEP-506
As STOs have increased in popularity, many established cryptocurrency platforms have recognized the necessity of integrating tokenized securities. Ontology Network is the latest platform to release their own security token standard: the OEP-506.
Ontology Network is a blockchain-based system that supports many distributed ledgers, smart contracts, applications, and various data exchange protocols. Expectations were high when the Ontology Network first released on the NEO network last year and the development team has been busy behind the scenes putting together their own ONT blockchain network.
Security tokens are clearly on Ontology’s agenda with the project announcing their OEP-506 standard for security tokens on their platform.
The OEP-506 Standard
According to their announcement, the OEP-506 “standardizes a series of interfaces for security token offerings (STOs) and meets other requirements they have, such as KYC completion.”
The Ontology network is moving towards STOs to support a broader range of token management and dApp services. These services include:
- Trust services to ensure participants prove their valid identities and the conditions of their investments are never changed.
- Registration services to provide for the necessary regulatory oversight for security tokens.
- Compliance services so that all issuers have a set standard on how to conduct their security token offerings.
- Notification message services to disclose all the necessary information via push updates to investors.
Security token issuances are one of the main focuses right now for the Ontology Network. The OEP-506 protocol will allow for compliant, encrypted digital securities thus creating a streamlined process that is easily managed by the issuer.
Ontology, however, is one of many companies who has adopted their own security token standard. Ethereum developers, for example, have been working on the ERC-1400 standard as a possible solution for security token issuers and investors. Securitize is another company dedicated to providing compliant security token standards for this still-emerging industry with the help of major investments from Coinbase and Ripple.
What do you think of Ontology’s new token standard? Do you believe Ontology Network will have a place in the security token industry? Let us know in the comments below.
Image courtesy of Ontology Network.