The Liquid Network is a Bitcoin sidechain that supports the creation of new digital assets in addition to the ability to peg-in bitcoin to the network. However, issuing a new asset on Liquid typically requires getting your hands dirty with some code.
Issuing securities in particular presented serious challenges due to the need for issuers to comply with a variety of global regulations that are changing quickly. Building complex rulesets to meet these requirements takes time and can be easy to get wrong.
Security Tokens at the Click of a Button
That all changes soon. Today at Consensus 2019, Blockstream revealed the upcoming release of its new Liquid Securities platform, a user-friendly solution for businesses issuing security tokens on the Liquid Network.
With the launch of the Liquid Securities platform, businesses can quickly issue Liquid-based security tokens with the click of a button, and establish sophisticated rulesets to conform with their regulatory requirements with no software engineering experience required.
Through a single, simple web interface, users can manage all their issued tokens, “reissue” existing tokens (expand their supply), and monitor token usage.
“This is a completely new field, so building security token applications should be engineering-intensive work. Liquid Securities instead provides us with everything we need to get going out-of-the-box, helping us to get our token issuances to market faster. The fact that Liquid is built by one of the most accomplished teams in the Bitcoin industry gives us even more confidence in the service’s future.” - Simon Dixon, CEO of BnkToTheFuture
Flexible Rule Enforcement Through Multisig
Rules for token ownership, such as regional restrictions and investor accreditation, are established through a web interface and companion API, and enforced by a combination of multisignature smart contracts and a server-based Liquid Authorizer.
Thanks to this unique architecture, token rules do not have to be written at the smart contract level–as is the case with other blockchain platforms–and can be easily adjusted via the Liquid Securities control panel to allow issuers to adapt to fast-evolving digital asset regulations.
API Available for Integrations
For token issuance platforms that would like to offer Liquid as an option to their users, Blockstream offers a fully-featured Liquid Securities API. The API provides businesses all the tools necessary to deliver Liquid Securities tokens within their own application or platform.
The Liquid Securities platform is initially launching with a limited set of partners, who are pioneering many new tokenized securities use-cases on Liquid:
- BnkToTheFuture: the highly successful online investment platform plans to issue tokenized equity in the largest companies in crypto on Liquid.
- TokenSoft: a multi-blockchain issuance platform is integrating with the Liquid Securities API to provide Liquid-based issuance tools to its users.
- Atomic Capital: the issuance and fundraising platform plans to add Liquid to supported solutions available to customers looking to issue securities.
- Zenus Bank: an innovative new American bank that allows individuals and companies worldwide to open accounts remotely is planning to issue tokenized equity via Liquid Securities as part of a private offering..
- Pixelmatic: a fast-growing game studio led by Samson Mow will soon launch a security token on Liquid. Their latest game, Infinite Fleet, will also feature an in-game Liquid-based utility token to power its economy.
The Liquid Securities platform marks the first Liquid-based product to be launched by Blockstream, and a major step in commercializing the fast-growing inter-exchange settlement network.