BLABS Token Upgrade
BLABS is now using the T-REX security token standard
At Blockchain Labs Asia, we focus on the tokenisation of securities — from corporate strategy and structure, all the way through legal, financial, and operational implications, and the technology needed to support the tokenisation. Of course, a tokenised security is not particularly useful, if it cannot easily be exchanged, in a primary offering if needed in order to raise capital, and subsequently on the secondary market.
From our many interactions with issuing companies, intermediaries, and investors, we have come to form the strong belief that the potential of tokenised securities will only be realised if there is a combination of good assets, adequate infrastructure, frictionless process, and critical mass in the marketplace. All of these factors rely on and feed each other to a certain extent, and they all require open, interoperable standards and tools.
Polymath’s change of direction
At Blockchain Labs Asia we have been using Polymath’s technology since it was first made available, and have been strong supporters of Polymath. We have helped around 20 issuers create tokens on the Ethereum network using Polymath smart contracts. It was only natural that we “eat our own dog food” and tokenise our own equity, hence the BLABS equity-backed token. The first versions of the BLABS token were created using Polymath’s ST-20 standard on the Ethereum Network.
Ethereum has its flaws, as do all technologies, however it also has critical mass. Ethereum has the largest pool of developers, tools available, live infrastructure and planned developments, number of tokens, end-users, etc. It has become apparent over time that many companies are suffering from the “not invented here” mindset, and have created their own blockchains for the wrong reasons. It has also become apparent that many companies have created their own utility token, network, and eco-system, not because there any real need, but as a way to raise capital.
For example, although we have been longtime supporters of Polymath, we always felt that POLY added unnecessary friction, given it did not add anything to the token creation or management process that not have been accomplished via ETH. As the utility of POLY is marginal, its value has trended down towards zero over time.
Polymath has now announced a change of strategy away from Ethereum, and towards their own proprietary Polymesh network, which we do not support. Most participants in the capital markets sector has gone the other way, and most who started out with their own blockchain have migrated onto Ethereum. After listening to Polymath’s rationale for their change in strategy, it appears they have just doubled-down on a bad decision, rather than coming up with a resolution for their token-holders.
Our actions as a result
We strongly believe the future of security tokens relies on creating a frictionless environment with the largest possible number of participants, and that a move away from Ethereum will not help provide liquidity for token holders. As such, we have started migrating all of the tokens we have created on behalf of our clients away from Polymath and onto other solutions. This includes our own BLABS token.
We have now moved BLABS onto the T-REX standard developed by Tokeny.
Why T-REX?
Usage of T-REX allows for the issuance of security tokens and their subsequent transfer in a compliant way, with a particular focus on KYC and AML regulations.
The regulations applicable to tokenized securities are still evolving in many countries and are expected to change over the next few years. The T-REX standard was built in a modular and flexible way that allows us to change the compliance rules for transfers at any time, keeping up with any changes in regulations.
Of particular interest to us, is that T-REX is the only token standard including an identity management system to control the transfer of securities ownership on the blockchain, OnchainID. Having a third-party verify the claims of a token-holder and storing that verification on-chain, means that the token-holder is now able to take part in various primary market token offerings and secondary market trades without needing to re-verify or provide documentation.
OnchainID and the T-REX standard are used by a growing number of providers in token issuance, primary offerings, and secondary trading. This growing eco-system will help to ensure the liquidity of the tokens we work on with our clients.
The BLABS token swap is now complete
We have issued 100,000,000 BLABS from the new contract address to BLABS holders, and have burned all 100,000,000 BLABS from the old contract address.
BLABS holders can view their holdings directly on Etherscan, or they can add the new token address to MetaMask, MyCrypto, or any other wallet supporting ERC-20 tokens.
Blockchain Labs Asia has been working with blockchain technologies in various sectors since 2014. We apply new paradigms & technologies to transform industries, from concept to capital-raising, implementation & operation. Our focus is on using tokenised securities to transform illiquid assets into liquid assets.
The equity of Blockchain Labs Asia Ltd (LL11527) has been tokenised, and the rights to the equity is represented by the BLABS security token issued on the Ethereum network.
Visit our website, join our Telegram chat, or contact support@blabs.asia for more information about our company and BLABS.
