POLY

Polymath is a blockchain-based platform that simplifies the creation, issuance, and management of security tokens for real-world assets. It provides solutions like the Polymath Capital Platform, a white-label solution for asset tokenization, and Token Studio for user-friendly token design. Operating on Polymesh, its purpose-built blockchain, Polymath ensures regulatory compliance and secure digital asset transactions. The platform helps businesses raise capital efficiently and enables fractional ownership by transforming traditionally illiquid assets into accessible digital securities, addressing legal, financial, and technical aspects. The POLY infrastructure underpins this compliant tokenization process.

Polymath addresses significant inefficiencies and barriers in traditional securities markets. It tackles issues like complex logistics, illiquidity for smaller investors, high transaction fees, and difficulties in ensuring authenticity for assets like precious metals or real estate. By enabling asset tokenization, Polymath provides increased efficiency, reduces compliance costs through programmable rules, and improves liquidity by opening assets to a global investor pool. It also enhances transparency with a shared, tamper-proof ledger, facilitating innovation in how digital securities are managed and traded, moving beyond outdated financial infrastructure.

Polymath is primarily powered by Polymesh, an institutional-grade, permissioned blockchain specifically engineered for regulated digital assets. Unlike general-purpose blockchains such as Ethereum, Polymesh incorporates unique features like on-chain identity verification, built-in compliance (utilizing standards like ST-20 and aligning with ERC-1400), and robust governance mechanisms. This specialized architecture ensures high throughput, low transaction costs, and the necessary infrastructure to meet strict legal and regulatory standards for security tokens. Polymath's platform integrates seamlessly with Polymesh to facilitate secure and compliant digital asset transactions.

Polymesh uses Nominated Proof-of-Stake (NPoS) with slashing conditions tailored for regulated assets, whereas Ethereum relies on energy-intensive PoW (historically) or permissionless PoS. NPoS requires validators to pass KYC checks and stake POLYX, with penalties for malicious acts. This combines cryptographic security with legal accountability—critical for securities handling. Transactions achieve deterministic finality in 2-3 seconds, eliminating probabilistic settlement risks present in Ethereum-based security tokens.

Yes, Polymath's modular smart contracts support advanced instruments like revenue-sharing tokens. Partners like Corl Financial Technologies use Polymath to tokenize equity with automated revenue distribution. The Dividend Manager module enables: - Scheduled payments via checkpoints - Multi-currency distributions (stablecoins, fiat) - Tax documentation generation This allows Corl to distribute revenue percentages to token holders monthly without manual intervention.

While Polymesh requires KYC for node operators and participants, decentralization is maintained through: 1) **Open Validator Selection**: Any entity meeting technical/staking requirements can operate nodes. 2) **Governance Voting**: POLYX holders propose/approve protocol upgrades. 3) **Decentralized Identity**: Claims are verified by multiple providers, not a single authority. This balances regulatory needs with blockchain’s trust-minimization principles.

Polymath automates multi-jurisdictional compliance through: - **Attestation Providers**: On-chain KYC/AML specialists (e.g., brokers, lawyers) issue reusable credentials. - **Composable Rules**: Issuers combine pre-approved compliance modules (e.g., lockups, investor caps). - **Real-Time Audits**: All transactions generate immutable compliance reports for regulators. This reduces manual processes by 80% compared to traditional securities issuance.

Enterprises adopt Polymath for: 1) **Regulatory Precedence**: FINMA classified POLYX as a utility token, reducing legal uncertainty. 2) **Cost Efficiency**: White-label solutions avoid $1M+ custom development costs. 3) **Ecosystem Access**: Native integrations with 50+ custody providers, KYC services, and exchanges like Blocktrade.com. 4) **Gasless Operations**: Enterprises avoid crypto volatility via fiat-denominated fee settlements.