What is ERC 1400?
The ERC1400 is a token standard introduced by Polymath alongside other external contributors. This token standard impose regulation for security tokens by implementing jurisdictional laws from around the globe. It even applies off chain data to transactions to include the important real world input and authorization.
With these elements being incorporated into the security token smart contract the users may experience:
Transparency- The capacity to reverse, force, and check the transfer status makes the journey of the tokens completely transparent to the marketplace to provide confidence in the system, to enforce regulatory requirements and to avoid unwanted activities.
Streamlined due diligence- Standardization ensures that stakeholders like exchanges and custodians no longer have the duty to complete technical due diligence prior to on-boarding the asset.
Expanded range of supported assets- Broad range of current and new financial assets like publicly traded equity and bonds, traditionally non-liquid assets like private placements, real estate, artwork as well as new synthetic baskets or mutual funds are supported very well.
Improved user Experience- It helps the investors to easily understand why trades fail and what’s need to remain compliant.
Ability to modify on and off-chain transaction parameters and meta data, validation of on chain transactions by Inducting signed data, Compliance with ERC-77 and ERC20 standards are other usage of ERC1400.
Read more about ERC1400 Token development and its features