ERC 1400 token is a cryptotoken built on Ethereum blockchain. It differs from other tokens built on ETH (ERC-20, ERC-777), because of special requirements for Security tokens.
Accelerate the issuance and management of securities on the Ethereum blockchain by specifying a standard interface through which security tokens can be operated on and interrogated by all relevant parties.
Security tokens differ materially from other token use-cases, with more complex interactions between off-chain and on-chain actors, and considerable regulatory scrutiny.
Security tokens should be able to represent any asset class, be issued and managed across any jurisdiction, and comply with the associated regulatory restrictions.
Moving the issuance, trading and lifecycle events of a security onto a public ledger requires having a standard way of modeling securities, their ownership and their properties on-chain.
The following requirements have been compiled following discussions with parties across the Security Token ecosystem.