Hyperlink Capital announces its SFT protocol for security tokens

HyperLink Capital has announced the release of its SFT-protocol, which will become the extended standard of ERC20 markers for tokenized securities. The protocol will be an open source project.

HyperLink Capital has been involved in blockchain block-based markets for some time, but they are increasingly focusing their attention on tokenized securities. Now they have just announced a protocol that Ethereum is trying to create a standard for this new asset class based on a notebook.

Secured Financial Transaction Protocol

HyperLink Capital has developed an open source protocol that ensures network compliance for the Ethereum network. The Secured Financial Transaction Protocol (SFT), written in Solidity, will allow for the use of tokenization of debt securities and stock-based securities.

Despite the fact that there are other ideas about the new standards of the token for Ethereum, SFT does not seek rent and seeks to be completely transparent in its design. According to HyperLink Capital, “protocols on security tokens that require a utility token introduce unnecessary friction into an area where acceptance is key.” Moreover, this problem often causes issuers and investors to depend on the technology supplier on the damage to the entire industry. There should be no gatekeepers, but instead we must recognize that it is in the common interest of the block space to come up with a single plan.

Thus, the SFT protocol aims to be a model that allows the widest range of market participants to interact with the least amount of friction.

Philosophy behind the SFT protocol

Now you might be wondering: why do we need another token? The SFT protocol differentiates itself due to its basic structure and philosophy:

  • The security token protocol must be available, open source and without rent.
  • Compliance should be chained whenever possible.
  • The token standard must go beyond the life cycle of any particular company.
  • Identity is a prerequisite for participation, and this is connected with confidence building.
  • First of all, real use cases should be in front and in the center.

Too many times the cryptocurrency space suffers from what may be called “fenced gardens”. This means that tokens are often issued and traded within their designated ecosystem without considering the interaction between different markets. These walls do nothing to promote space, but instead scare new investors and distract or confuse newcomers.

In short, the current token standards are deceiving the potential that blockchan brings. The SFT protocol hopes that this is an open source chain-based solution that solves the match issue for security tokens in the Ethereum block chain.

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