- LEXIT to provide M&A services to Polymath token issuers
- Tokenization of abstract assets on the way
- Progress towards a fully compliant financial ecosystem on the blockchain
At the recent Polycon Conference in Barbados, LEXIT and Polymath announced a partnership that sees LEXIT functioning as a liquidation venue for pivoting startups on the Polymath platform.
Led by CEO Amir Kaltak, LEXIT provides a decentralized, tokenized platform on which companies, assets, and technology can be bought, sold, and traded without the need for traditional facilitators. Without these facilitators, the mergers and acquisitions process becomes faster, and, since no additional fees are levied by said facilitators, buyers and sellers get a better deal.
It was further stated that Polymath and LEXIT would collaborate to tokenize abstract assets like intellectual property, licensing, and usage rights, which can then also be traded on the LEXIT platform. This is a novel use-case for tokens.
“With Polymath’s services, it will soon be possible to tokenize a wide array of corporate assets that were until now out of the reach of the blockchain industry. As such, Polymath and its unique approach to tokenization are an ideal match for LEXIT’s corporate assets marketplace,” said Mr. Kaltak.
The brainchild of Polymath CEO Trevor Koverko, the Polymath platform guides issuers through the complex legal and technological hurdles that traditional ICOs must overcome. However, tokens launched on the Polymath platform are fully compliant with existing securities regulations and have KYC/AML ‘baked-in’ to the token with smart contracts. Such compliance prevents the purchase, sale, and trade of such tokens between non-accredited investors.
Polymath’s ST-20 token standard allows financial instruments like traditional shares and bonds to be issued on the blockchain or existing instruments to be tokenized, thus facilitating their trade.
In 2017, it is estimated that around half of all ICOs failed leaving behind intellectual property and other assets. If that trend continues through 2018 and beyond, blockchain-based M&A could be big business indeed. There is no guarantee that tokens issued on the Polymath platform won’t be subject to the same success/failure rates, but their partnership with LEXIT will allow companies to exit efficiently.
According to Mr. Koverko in a recent interview, as a reimagining of Wall Street, Polymath provides the base layer for other financial services, such as M&A and venture capital, to come to the blockchain. Their partnership with LEXIT another step down the road to a fully regulated, blockchain-based financial ecosystem.
You can watch the interview here: https://youtu.be/VpjnpIRAo3I