They will choose to live on a purpose-built compliance focused blockchain
Security tokens need institutions to find success and unlock a trillion-dollar market. To do that, we need to upgrade the infrastructure. That means going from a general-purpose to a purpose-built blockchain. This purpose-built blockchain would prioritize functions not native to any other blockchain like identity, asset, governance, and confidentiality.
Collaboration is in our DNA. We’ve used this approach to understand the pros and cons of a purpose-built Security Token blockchain which lead to the Polymesh Blockchain Initiative. We’ve proven the market creating the ST20 protocol and engaged with the industry to lead the development of the ERC1400 standard. Through our Security Token experience over the last year, we believe that a new purpose-built blockchain is the only answer to a thriving Security Token industry.
In short — regulation & technology. Regulators are more open to changes now than ever before. And the technology has advanced hand over fist. That means consensus protocols, improvements in confidentiality and identity, all learned through experimentation and research are now available to a purpose-built blockchain to implement natively.