Polymath's role in your security tokenization could be best described as that of a financial printer, i.e. Polymath provides the technology required to reserve your ticker symbol, create your security token and configure/schedule your security token offering.
Security tokens created with the Polymath dApp can only be bought-by and sold-to investors whose ethereum address is on the issuer-controlled whitelist (outcome of the KYC/AML/accreditation process), so that both primary and secondary trades are subject to the conditions Issuers have set in their token.
Issuers can set additional properties to the security token such as:
- Maximum number of investors
- Maximum percentage ownership per wallet address (i.e. no investor can own more than x% of the total supply of tokens. Note that specific investors can be exempt of that limit)
- Buy lockup (i.e. investor cannot buy tokens from anyone but the STO before a given date)
- Sell lockup (i.e. investor cannot sell their tokens to anyone before a given date)
- KYC/AML expiry date (i.e. investors cannot sell or buy tokens until their KYC/AML is refreshed)
Additionally, Polymath has built a broad ecosystem comprised of Advisors, Law Firms, KYC Providers, Marketing Agencies, Transfer Agents, Custodians and Exchanges to deliver both continuous compliance and a pathway to liquidity for Polymath created Security Tokens.