ICO Project Polymath Is Trying to Buy a Stake In a Real Stock Exchange

In the run-up to the company's Wednesday morning appearance at CoinDesk's Consensus conference, Polymath also revealed it's in the process of closing a deal to acquire a large stake in the Barbados Stock Exchange and that it's working on a deal with the alternative trading system tZero.

Koverko sees a crisis of liquidity in security tokens.

As CoinDesk previously reported, many of the tokens issued so far are under a lockup period required by U.S. securities regulations, but Koverko argues that's not the whole story.

For now, these tokens will be issued on the ethereum blockchain.

Polymath is one of several companies that have jumped into the token issuing space, which grows more crowded by the week.

The firm describes itself as a platform, one that brings in companies and guides them through the process of issuing a security token.

"It's quite cool as well when you look at the China relationship that Barbados has," because so many Chinese companies have needed to look abroad as domestic regulations have banned new token issuances, he said.

Abed is working to negotiate the use of TZero's backend to run a crypto specific exchange out of the Barbados Stock Exchange.

Once the exchange is running, it will be a ready place for new tokens to trade, with guarantees built into the ST20 platform that no one will be able to hold them that shouldn't.

The Barbados Stock Exchange and tZero had not confirmed the deals in process at press time.