ERC-1400
ERC1400 was born of the need for consistency in how we build, issue, trade, and manage security tokens.
The Security Token Standard
ERC1400 was born of the need for consistency in how we build, issue, trade, and manage security tokens.
What it Does
ERC1400 combines new and existing standards with the goal of creating a unified framework for all security tokens. It builds off of our ST20 protocol as an extensible and flexible set of standards for:
Core compliance components
Document handling and notification
Security token controls and permissions including delegation and forced token transfers
Partial fungibility - improving transparency for investors of their ownership rights
ERC1400
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Why it Matters
Building industry consistency
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Increased transparency.
Forced token transfers and partitioned balances promote transparency and auditability, reducing the risk of bad actors and improving regulatory acceptance.
Streamlined due diligence.
Stakeholders like exchanges or custodians no longer have the onus to complete technical due diligence.
Expanded range of supported assets.
Publicly traded equity and bonds, or traditionally illiquid assets like private placements, real estate, fine art, or synthetic asset baskets.
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Improved user experience.
Investors can easily understand why trades fail and what’s needed for compliance.
Standards Comparison
| Feature | ERC-20 | |
|---|---|---|
| Immutable Cap Table | ✓ | |
| Open-source codebase | ✓ | |
| Controller Access (Token Recovery Process) | ✓ | |
| Compliance | ✓ | |
| Issue / Redemption | ✓ | |
| Share class management | ✓ | |
| On-chain transfer validation | ✓ | |
| Permission Management w/ Multiple Agents | ✓ | |
| Stakeholder Identity Management | ✓ | |
| Batch Functions | ✓ | |
| STOs | ✓ | |
| Published External Audits | ✓ | |
| Partially fungible tokens | ✓ | |
| Off-chain Authorisation | ✓ | |
| Document Management | ✓ | |
| Checkpoints | ✓ | |
| Partitions | ✓ | |
| Error Codes | ✓ | |
| Settlement | ✓ | |
| Corporate Actions | ✓ | |
| Identity-driven permissions access | ✓ | |
| Custody | ✓ | |
| Security Identifiers | ✓ | |
| Aggregated Entity Balances | ✓ | |
| Relayer Support | ✓ | |
| Confidential Assets | ✓ |
Begin your security token journey
Work with Polymath to bring security tokens to your clients or investors.
Polymath is the global leader in asset tokenization technology and pioneered the industry’s security token standard with ERC 1400.
Edmund Yong
Co-Founder
Celebrus
Geeth Jay
Co-Founder and CEO
Cryptoworth
Claus Skaaning
CEO
Digishares
The standardization of the token security protocol created by Polymath provides a regulatory-driven, technically-enforced and clear set of rules and guidelines for new security token issuers to follow.