SONATA Token Upgrade

SONATA is now using the T-REX security token standard

At Sonata Capital, our business is investment for the digital economy. We manage a collection of tokenised, and (soon to be) exchange traded investment funds across different asset classes and sectors.

The increasingly widespread adoption of blockchain and other digital technologies is spawning a new and rapidly growing business and financial ecosystem, some of which is a progression of legacy systems, but much of which is entirely new. We believe tokenised securities are the next step in the evolution of capital markets, and are actively trying to support this paradigm shift.

As such, we have tokenised 100% of the equity in Sonata Capital itself, with beneficial ownership represented by the SONATA security token.

Moving away from Polymath

From our interactions with our portfolio companies, various 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.

The first versions of the SONATA 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.

Polymath have now announced a change of strategy away from Ethereum, and towards their own proprietary Polymesh network, which we do not support.

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. Because of Polymath’s strategy, we have now moved SONATA onto the T-REX standard developed by Tokeny, and our funds will also follow.

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 SONATA token swap is now complete

We have issued 100,000,000 SONATA from the new contract address to SONATA holders, and have burned all 100,000,000 SONATA from the old contract address.

SONATA 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.

Sonata Capital is registered in the Labuan International Business & Financial Centre, and invests in companies successfully exploiting the vast opportunities of the digital economy.

100% of the equity in our funds have been tokenised, and will be listed on digital securities exchanges in Labuan and elsewhere. The equity of Sonata Capital Ltd (LL16076) has also been tokenised, and the rights to the equity is represented by the SONATA security token issued on the Ethereum network.

Visit our website, join our Telegram chat, or contact support@sonata.capital for more information about our company and funds.