Smartlands Deploys ‘Fully Compliant’ Wallet for On-Chain Security Token Trading on Stellar

On May 6th 2019, Smartlands announced the deployment of a fully compliant, Stellar powered wallet for security tokens. The wallet will allow for the trading of security tokens, SLT, and XLM. It also features two different modes of operation; one for beginners and one for seasoned traders.

Smartland’s Security Token Wallet on Stellar Explained

Out of concern for regulatory compliance, the new wallet will work exclusively within the regulated segment of Stellar.

Each investor will be required to undergo KYC verification, and comply with jurisdiction-respective laws and regulations in order to transact security tokens on the platform.

In addition, an Artificial Intelligence-based compliance engine will “check each transaction” to identify illicit activities through a scored AML risk identification process.

The wallet comes along with features to include account recovery— which includes the recovery of lost private keys— and account mapping. In terms of the latter, the wallet enables investors to not expose their existing wallets to multisig, but instead to create a new dependent account which will be controlled “within their existing private key or Ledger hardware wallet device”.

Smartlands CTO Ilia Obraztcov commented on future plans for the wallet, which include the compatibility for additional digital assets:

“Today we’ve finally managed to fortify our expertise to the extent that allowed us to build a new Smartlands wallet. It will be used for trading security tokens, SLT, and XLM. We are going to continue to work towards the possibilities of adding other security tokens issued on the Stellar network (possibly on different blockchains) to the Smartlands Wallet, though, certain additional compliance procedure will be required.”

The wallet will also feature two different options: one for beginners which focuses on the fundamentals of a project, and a “pro mode” with sophisticated data for daily trading.

The Security Token Boom Explained

Throughout the last year, regulatory agencies have increasingly entered the digital asset realm— to include both the U.S. SEC and CFTC.

SEC Chairman Jay Clayton has publicly stated how virtually every Initial Coin Offering (ICO) he has seen, constitutes a securities offering.

The digital asset industry has responded with the regulatory compliant Security Token Offering (STO).

In the United States for example, compliant security tokens algorithmically enforce the SEC’s existing securities laws. Through the STO, tokenization has brought new levels of liquidity to real-world assets including real-estate, equity, investment funds, and even fine art.

While ICOs currently raise 58 times less than they did at this time last year, STOs saw a 130% increase in Q1 2019.

Ethereum is the current blockchain of choice for security token issuers, but some argue Stellar has many more advantages.

For more on security token functionality, be sure to review our comprehensive security token guide.

What do you think about the launch of Smartland’s security token wallet? Will Stellar become the future blockchain hub of security tokens? Let us know what you think in the comments section below.

Image courtesy of Smartlands.